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STATE  OF  NEV/  YORK; -. 


n 


REPORT 


OF  THE 


Committee  of  Inquiry 


TO 


GOVERNOR  WILLIAM  SULZER 


JOHN  N.  CARLISLE 
JOHN  H.  DELANEY 
H.  GORDON  LYNN 

Committee 
JOHN  T.  NORTON 

Counsel 


TRANSMITTED  TO  THE  LEGISLATURE  MARCH  24.  1913 


ALBANY 

J.  B.  LYON  COMPANY.  PRINTERS 

1913 


':-''  :.':  '''.-'''''•:    \  :-,     : 


? 


/T 


t-  -  »  • ' 


MESSAGE  FROM  THE  GOVERNOR 

TRANSMITTING 

REPORT  OF  THE  COMMITTEE  OF  INQUIRY 


STATE  OF  NEW  YORK, 

Executive  Chamber, 

Albany,  March  24,  1913. 
To  Hie  Legislature: 

Upon  my  induction  into  the  office  of  Governor  of  this  State, 
I  found  that  the  expenses  of  the  administration  of  the  govern- 
ment of  the  State  had  several  times  multiplied  during  the  past 
generation,  and  that  the  expenses  had  mounted  to  so  startling 
a  figure  that  an  investigation  of  the  causes  for  such  result  was 
imperative,  in  order  that  the  people  of  the  State,  who  are  obliged 
to  furnish  the  revenue  for  the  support  of  government,  might  be 
advised  thereof,  and  in  order  that  application  of  sound  business 
and  financial  principles  to  the  affairs  of  the  State  might  be 
advanced. 

In  my  first  message  to  the  Legislature,  I  invited  attention  to  this 
most  important  subject;  and,  actuated  by  a  desire  to  safeguard 
the  rights  of  the  people  and  to  give  them  a  wise  and  economical 
business  administration  of  the  State's  affairs,  I  availed  myself 
of  the  authority,  granted  to  the  Governor  by  the  executive 
law,  to  ajDpoint  a  committee  to  conduct  such  investigation.  The 
report  of  that  committee  is  now  before  me,  and  I  herewith  trans- 
mit it  to  the  Legislature.  It  is  so  complete,  concise  and  intelligent 
that  an  analysis  of  it  in  this  message  is  not  only  unnecessary, 
but,  in  my  judgment,  it  would  be  unwise  for  me,  by  such  analysis, 
to  divert  attention  from  the  report  itself,  which  is  worthy  of  the 
attentive  reading  and  careful  consideration  of  every  member  of 
the  Legislature,  and  of  the  people  generally  throughout  the  State. 
Therefore,  it  seems  to  me  wiser  to  submit  the  report  of  the 
Committee    of    Inquiry    to    the    Legislature    with    my    general 


4f)78;>tj 


•  •  ■       • 


recommondation  tJiat  it  bo  approved,  and  ilmt  llic  l)ills  whicli 
are  suggested  be  enacted  intu  laws. 

If  tlif  notion  has  taken  lodgment  in  any  mind  that  the  pre- 
rogatives of  the  Legislature  have  been  in  the  least  invaded  by  the 
nvork  of  the  Committee  of  Tnqnirv,  a  moment's  reflection  will 
dissipate  that  view.  There  has  been  no  effort,  in  any  way,  to 
interfere  Avith  the  constitutional  power  of  the  Legislature;  and, 
beyond  that,  the  Committee  of  Inquiry  has  carefully  avoided,  as 
a  reading  of  the  report  will  demonstrate,  any  appearance  of  the 
assumption  of  interference  with  the  recognized  authority  of  the 
co-ordinate  branches  of  the  State  government. 

Thus  it  will  be  readily  appreciated  that  the  Committee  of  In- 
quiry omitted  all  investigation  as  to  the  legislative  and  judicial 
branches  of  the  State  government.  It  devoted  its  efforts  to 
investigations  with  respect  to  the  administration  of  the  State's 
affairs  for  the  purpose  of  suggesting  necessary  economies  and 
recommending  the  promotion  of  efficiency  in  such  administration. 
The  results  of  its  labors  will,  I  have  no  doubt,  be  appreciated  by 
the  legislative  branch  of  the  State  government,  as  it  is  by  the 
Executive. 

In  the  organization  of  the  Committee  of  Inquiry,  my  anxious 
endeavor  was  to  secure  the  services  of  wise  and  competent  men  who 
could  be  depended  upon  to,  disinterestedly  and  without  malice  or 
partisanship,  devote  themselves  to  the  important  work  committed 
to  them.  The  result  of  the  Committee's  work  abundantly  justifies 
my  confidence  in  its  membership.  The  remarkable  industry  and 
energy  of  the  Committee  cannot  be  too  highly  commended.  In 
an  all  too  brief  period  of  time,  it  has  performed  extensive  and 
arduous  labors  with  a  thoroughness  that  challenges  favorable  com- 
parison with  the  work  of  any  public  investigation  of  which  I  am 
aware. 

The  imtiring  devotion  of  its  members  to  the  accomplishment  of 
the  lofty  purposes  of  the  investigation  has  set  a  standard  and 
furnished  an  example  of  patriotic  endeavor,  which,  it  is  hoped, 
will  be  emulated  in  the  future.  Its  work  commands  the  admira- 
tion of  puldic  officials,  and  compels  the  gratitude  of  the  people  of 
the  State. 


The  chairman  of  the  Committee,  John  N".  Carlisle,  is  one  of 
the  leading  lawyers  of  the  State,  and  a  citizen  of  the  true  public 
spirit,  as  well  as  a  man  of  the  highest  character  and  the  broadest 
capacity.  The  second  member  of  the  Committee,  John  H. 
Delaney,  has  earned  his  way  to  recognition  in  the  business  world 
as  a  wise  administrator,  and  has  now  taken  his  place  in  the  public 
life  of  the  State  as  a  citizen  devoted  to  the  general  welfare.  The 
third  member  of  the  Committee,  H.  Gordon  Lynn,  has  earned 
an  enviable  reputation  as  an  accountant,  and  a  systematizer  of 
business  management.  In  addition  to  his  expert  knowledge,  he 
brought  to  bear  upon  the  work  of  the  Committee  his  thorough 
acquaintance  with  aifairs  of  public  accounting  gathered  in  the 
city  of  ISTew  York,  all  illuminated  by  his  pronounced  devotion  to 
the  cause  of  economic,  efficient  and  good  government. 

The  Counsel  to  the  Committee,  John  T.  I^orton,  is  Deputy 
Attorney-General,  a  former  member  of  Assembly,  former  Corpora- 
tion Counsel  of  the  city  of  Troy,  honored  by  his  party  by  a 
nomination  for  the  office  of  Secretary  of  State,  and  last  year 
endorsed  by  the  bench  and  bar  of  this  vicinity  for  nomination  for 
the  office  of  Associate  Justice  of  the  Court  of  Appeals.  He  is 
recognized  as  one  of  the  most  able  and  scholarly  lawyers  in  prac- 
tice in  this  Stale. 

Naturally,  from  their  character  and  experience,  these  dis- 
tinguished public  servants  aimed  at  the  highest  ideals,  and  the 
only  regret  that  comes  to  me  is  that  such  devoted  service  to  the 
people  was  neeessarily  for  only  so  limited  a  period.  They  have 
done  a  splendid  work.  They  have  saved  the  taxpayers  millions 
of  dollars.  They  have  confirmed  my  confidence  in  their  ability. 
They  have  earned  the  gratitude  of  the  people  of  the  State. 

It  is  the  recommendation  of  the  Committee  of  Inquiry  in  its 
report  that  the  great  work  which  it  has  thus  hastily,  but  with  re- 
markable thoroughness,  accomplished,  should  not  be  a  passing  work 
of  wisdom,  to  be  read,  admired,  commended  and  then  neglected. 

In  a  somewhat  similar  effort  to  promote  efficiency  and  economy 
in  the  administration  of  the  Federal  Government,  more  than  two 
years  have  been  occupied  by  a  commission  at  Washington.  The 
work  of  the  Connnittee  of  Inquiry,  during  the  brief  space  that  has 
intervened  since  the  beginning  of  this  year,  will  not  suffer  by 
comparison  with  the  two  years'  work  performed  at  Washington. 


If  efficiency  and  economy  in  the  administration  of  the  State's 
affairs  are  to  be  furthered  and  made  a  permanent  endeavor,  the 
work  must  l)e  continued.  The  Committee  recommends  the 
establishment  of  a  Department  of  Efficiency  and  Economy,  and 
wisely  supplements  that  recommendation  by  legislation  which  will 
uphold  the  hands  of  the  Commissioner  of  Efficiency  and  Economy 
by  putting  into  operation,  for  the  general  welfare  of  the  people, 
a  systematic  business  and  financial  management  of  the  State's 
business  and  financial  affairs.  It  is  high  time  the  State  of  New 
York  was  placed  on  a  business  basis  in  the  administration  of  its 
affairs. 

If  the  Legislature  will  approve  these  recommendations,  a  long 
step  forward  in  the  interest  of  efficient  and  economic  administra- 
tion will  be  at  once  taken,  and  a  permanent  policy  will  be  estab- 
lished which  will  reduce  to  the  minimum  the  expenses  of  the 
administration  of  the  State's  government;  and,  thus,  the  interests 
of  the  taxpayers  throughout  the  State  will  be  safeguarded  against 
waste,  extravagance  and  inefficiency. 

With  the  interests  of  the  people  at  large  before  our  minds,  it 
seems  to  me  that  it  is  the  imperative  duty  of  the  legislative  and 
executive  branches  of  the  State  government  to  regulate  the  busi- 
ness management  of  the  State's  affairs  upon  the  lines  advised  by 
the  Committee.  I  am  convinced  that  there  is  no  room  for  doubt 
as  to  the  wisdom  of  adopting  this  course. 

It  is  therefore  without  hesitation  and  with  the  full  conscious- 
ness that  I  am  performing  to  the  extent  of  my  constitutional 
authority  a  patriotic  duty  to  the  people  of  the  State,  that  I 
recommend,  the  enactment  into  law  of  these  measures  for  the 
promotion  of  efficiency  and  economy  in  the  administration  of  the 
State's  business  and  financial  concerns. 

The  legislation  recommended  by  the  Committee  of  Inquiry  has 
had  my  most  careful  consideration.  Its  wisdom  is  abundantly 
justified  in  the  Committee's  report.  It  rests  upon  good  rcnson. 
These  progressive  measures  have  been  carefully  prepared.  They 
are  in  the  interest  of  the  people.  They  define  a  wise  public 
policy.  Their  enactment  into  laws  will  redound  to  the  credit  of 
the  Legislature  that  approves  them. 

The  work  of  the  Committee  of  Inquiry  has  inaugurated  a  busi- 
ness system  for  the  State.    The  old  methods  of  waste  and  extrava- 


gance,  or  worse,  must  be  discarded.  The  people  demand  an  honest 
and  efficient  business  administration  of  their  alfairs.  Thej  are 
entitled  to  nothing  less.  If  the  recommendations,  herewith  sub- 
mitted, shall  find  place  in  the  body  of  the  State's  law,  the  great 
Empire  State  of  Xew  York  will  take  the  place,  which  rightly 
belongs  to  it,  at  the  head  of  its  sister  states,  furnishing  to  its 
people  a  wise,  honest,  efficient  and  economical  administration  of 
government.  The  people  of  the  State  so  demand.  It  is  our  duty, 
as  representatives  of  the  people,  to  enact  this  demand  into  law. 

WILLIAM  SULZER. 


REPORT 


OF  THE 


Committee  of  Inquiry 


TO 


GOVERNOR  WILLIAM  SULZER 


REPORT 


OF    THE 


COMMITTEE  OF  INQUIRY 


Albany,  N.  Y.,  March  21,  1913. 

Honorable  William  Sulzer^  Governoj'  of  the  State  of  New  York, 
Executive  CJiamher,  Albany,  N.  Y.: 

Sir. —  The  Committee  of  Inquiry,  having  devoted  the  time 
allowed  to  it  when  it  was  appointed,  and  having  completed,  so 
far  as  the  time  limited  permitted,  the  work  assigned  to  it,  sub- 
mits the  following  as  its  final  report,  together  with  the  recom- 
mendations, which  impress  it  as  wise  and  for  the  advantage  of 
the  State,  for  the  promotion  of  efficiency  and  economy  in  the 
service  of  the  State  and  in  the  State's  business  and  financial 
concerns. 

In  your  first  message  to  the  Legislature  you  recommended  the 
appointment  of  this  Committee  in  the  following  language: 

"Many  worthy  citizens  have  suggested  to  me  the  advis- 
ability of  examining,  through  a  committee  of  inquiry,  into 
every  department  of  the  State  government  to  ascertain  where 
expenditures  can  be  checked  and  the  money  of  the  taxpayers 
saved,  and  also  to  recommend  to  the  Legislature  in  this  mes- 
sage the  desirability  of  abolishing  useless  offices,  consoli- 
dating wherever  possible  bureaus  and  commissions,  with  the 
sole  object  of  more  rigid  economy  and  a  greater  degree  of 
efficiency." 

On  January  6,  1913,  your  Committee  was  appointed  and  we 
immediately  entered  upon  the  discharge  of  our  duties  and  have 
since  been  engaged  in  attempting  to  cover  the  enormous  mass  of 
detail  assigned. 

We  were  confronted  at  the  outset  with  the  proposition  that  in 
order  to  make  our  work  effective  this  report  must  be  made  in 
practically  sixty  days  from  the  time  we  were  commissioned,  to 
the  end  that  it  should  be  presented  to  the  Legislature  and  our 
recommendations  submitted  to  them  in  time  for  action.     ISTeces- 


parily  we  linvc  not  been  able  to  follow  up  in  every  detail  a  large 
number  of  nuitters  which  were  brought  to  our  consideration. 

Upon  our  organization  we  announced  that  our  line  of  action 
would  be  to  make  an  investigation  of  the  dilfercnt  departments 
of  the  State  for  the  purpose  of  trying  to  secure  economies  and 
efficiency  in  the  public  service.  It  is  along  tliis  line  that  we  have 
spent  the  greater  part  of  our  time.  We  deem  this  to  be  the  real 
constructive  part  of  our  work,  and  that  which  will  result  in 
lasting  benefit  to  the  State,  if  the  recommendations  we  sul)init 
are  enacted   into  laws. 

BUSINESS  METHODS  OF  THE  STATE  AND   ITS 
SYSTEM  OF  FINANCE. 

The  business  of  the  State  can  reasonably  be  said  to  be  run  with- 
out any  systematic  plan  whatever.  Each  department  is  conducted 
as  an  independent  enterprise,  and  there  is  no  effort  at  co-opera- 
tion, no  point  or  place  where  the  various  activities  of  the  State 
government  concentrate.  The  Governor  appoints  heads  of  depart- 
ments, generally  with  the  advice  and  consent  of  the  Senate,  and 
there  his  real  power  practically  ends ;  the  Legislature  creates  the 
departments,  and  after  that  merely  appropriates  funds  for  their 
support;  the  Comptroller  is  vested  with  only  a  limited  power  of 
audit,  and  that  power  extends  to  less  than  one-fourth  of  the 
amount  expended  last  year  for  the  support  of  the  State  institu- 
tions. The  condition  therefore  ensues  that  work  is  duplicated, 
labor  is  multiplied  and  expenditures  become  greater  each  succeed- 
ing year,  because  there  is  no  way  by  which  the  business  of  govern- 
ment may  be  considered  as  a  compact  whole.  To  bring  about  a 
proper  condition  of  control  it  seems  necessary  to  establish  new 
agencies  of  government  endowed  with  power  to  examine  and 
supervise  the  work  of  all  the  departments,  to  compel  uniformity 
in  methods  of  administration  and  accounting,  and  then  to  assemble 
together  the  results  obtained,  so  that  the  Legislature  and  the  Gov- 
ernor may  have  accurate,  complete  and  condensed  information  to 
aid  them  in  properly  exercising  their  legislative  and  executive 
duties. 

As  the  first  steps  toward  bringing  about  necessary  reforms,  we 
had  prepared  five  bills  which  we  submitted  to  you  with  a  pre- 
liminary report  on  the  eleventh  day  of  February,  1913.  These 
bills,  briefly  summarized,  provide  as  follows: 

1.  A  State  TJoard  of  Estimate,  consisting  of  State  officials,  to 
have  the  careful  preparation  of  the  appropriation  bills. 


2.  A  Comiiiissioiier  of  Etiicieiicj  and  Economy,  to  Lave  t.lio 
power  to  examine  into  all  the  expenditures  of  the  State,  and  to 
make  recommendations  along  lines  of  efficiency  and  economy. 

3.  A  State  Board  of  Contract  and  Supply,  controlled  by  State 
officials,  to  have  power  to  purchase  all  supplies  for  every  de- 
partment of  the  State. 

4-5.  The  Comptroller  to  have  absolute  power  to  audit  and  exam- 
ine every  expenditure. 

We  most  respectfully  urge  the  passage  of  these  bills  at  the 
earliest  possible  date. 

To  secure  real  economy  and  efficiency  in  State  affairs,  the  en- 
tire system  under  which  appropriations  of  funds  are  made  by  the 
Legislature  should  be  changed.  The  law  now  compels  depart- 
ments and  bureaus  to  submit  before  the  fifteenth  of  November  an 
estimate  of  the  amount  of  money  required  for  their  support  dur- 
ing the  ensuing  fiscal  year.  Inasmuch  as  the  present  fiscal  year 
begins  October  1,  this  means  that  these  estimates  are  prepared 
more  than  ten  months  in  advance.  Every  year  conditions  arise 
which  could  not  be  foreseen  by  even  the  most  careful  executives, 
and  the  svstem  has  resulted  sometimes  in  such  excessive  amounts 
being  appropriated  that  extravagance  is  invited,  and  sometimes  in 
such  deficiency  in  appropriation  that  departments  were  compelled 
in  violation  of  law  to  exceed  the  expenditure  allowed ;  and  the 
consequence  has  been  annual  supply  bills  and  special  bills  filled 
with  emergency  appropriations.  To  correct  this  condition  we 
recommend : 

First.  That  the  fiscal  year  of  the  State  begin  on  the  first  day 
of  July,  instead  of  the  first  day  of  October,  thus  bringing  the 
date  near  the  end  of  the  legislative  session. 

Second.  That  general  appropriations  should  be  available  only 
for  the  year  for  which  they  are  specifically  appropriated. 

Third.  That  all  unexpended  balances  lapse  at  the  end  of 
each  year.  The  conditions  under  which  the  funds  have  been 
handled  in  the  past  are  such  as  to  prevent  this  plan  becoming 
effective  until  September  30,  1914. 

Fourth.  That  it  should  be  unlawful,  and  under  no  circum- 
stances should  a  department  be  empowered  or  permitted,  to  incur 
liabilities  in  excess  of  an  appropriation,  and  the  Comptroller 
should  not  be  permitted  to  make  any  deviation  from  this  rule 
nor  sanction  directly  or  indirectly  any  violation  thereof. 


Fiftli.  That  the  appi'opriation  hill  should  not  permit  the  word 
'  Alaintcnauce  "  to  be  used  as  is  now  applied.  At  present,  in 
connection  with  prisons,  hospitals  and  charities,  this  term  covers 
wages,  salaries,  supplies,  expenses,  repairs  and  in  some  cases  bet- 
tennents,  and  the  institutions  should  be  required  to  separate  into 
detail  all  of  these  items,  otherwise  the  Legislature  has  no  control 
whatever  over  the  expenditures  for  these  purposes. 

Sixth.  That  supply  bills  be  discontinued.  Exigencies  and  con- 
tingencies should  be  taken  care  of  in  either  a  deficiency  or  a  spe- 
cial bill. 

Seventh.  That  the  form  of  the  appropriation  act  should  be 
changed  so  as  to  show  specifically  the  titles  of  positions  for  which 
salaries  are  provided,  instead  of  concealing  them  in  so-called 
"grades"  as  at  present. 

Our  examinations  into  the  various  departments  show  that,  as 
far  as  the  matter  of  interpretation  of  the  appropriations  is  con- 
cerned, each  department  is  a  law  unto  itself;  that  practically 
no  two  departments  handle  an  item  of  expense  in  the  same 
manner;  and  that  there  is  an  absolute  lack  of  unifoniiity  in 
treatment,  with  no  present  power  vested  in  anyone  to  bring  about 
this  necessarv  reforni. 

To  bring  about  control,  it  is  necessary  to  have  concentration  of 
power  and  authority.  Without  concentration  of  power  and 
authority,  efiiciency  and  economy  cannot  be  had ;  and  control  can- 
not be  had  by  a  Budget  Committee,  a  Finance  Committee,  or  any 
controlling  governmental  body,  until  all  of  the  departments  of 
administration  of  the  State  of  New  York  shall  have  been  com- 
pelled to  adopt  a  uniform  system  of  general  accounting. 

We  feel  confident  that  the  approval  by  the  Legislature  of  the 
foregoing  recommendations  will  increase  largely  the  efficiency 
of  the  service,  and  permit  of  regulation  of  expenditures  that  will 
result  in  very  large  saving  of  public  funds  every  year. 

UNEXPENDED  BALANCES. 

During  the  course  of  our  investigation  we  discovered  that  in 
nearly  every  department  of  the  State  there  were  large  unexpended 
balances  on  hand.  These  balances  occurred  by  reason  of  the 
departments  having  obtained  more  money  in  the  past  than  was 
necessary  for  the  purposes  for  which  they  were  asked,  and,  in 
some  instances,  these  balances  amounted  to  a  larger  amount  than 


was  necessary  to  run  the  department  for  two  full  years  for  the 
specific  purposes  desired. 

For  instance,  in  the  Insurance  Department  there  was  on  Sep- 
tember 30,  1912,  an  unexpended  balance  of  appropriation  for 
office  expenses  amounting  to  $30,190.67.  Upon  October  1st  there 
became  available  an  additional  appropriation,  made  by  the  last 
Legislature,  of  $25,000.  Thus,  there  was  in  this  fund  at  the 
beginning  of  this  fiscal  year  a  total  sum  of  $55,190.67. 

The  expenditures  on  account  of  office  expenses  during  the  last 
year  amounted  to  only  $19,413.71,  but  this  Legislature  was  asked 
to  appropriate  $25,000  more,  the  department  apparently  over- 
looking the  fact  that  there  was  already  sufficient  in  this  fund  to 
meet  the  requirements  of  two  years  to  come. 

Your  Committee  has  recommended  that  this  unexpended  bal- 
ance be  reappropriated,  and  no  new  appropriations  be  made  this 
vear. 

V 

As  we  have  heretofore  recommended,  the  practice  of  allowing 
unexpended  balances  to  be  carried  over  should  be  discontinued  and 
the  Legislature  should  provide  that  all  such  balances  do  lapse  at 
the  end  of  the  fiscal  year  1914,  and  at  the  end  of  each  succeeding 
year. 

PRINTING. 

The  cost  of  printing  for  the  Legislature  and  various  State  De- 
partments for  the  fiscal  year  1911-1912,  ordered  through  the 
State  Printing  Board,  is  given  in  the  Comptroller's  report  as 
follows : 

Legislative  printing    $388,554.49 

Departmental  printii  ■  i;'   189,981 . 0  i 

Engraved  bonds 31,803 .  50 

$610,339.06 
Estimated  outstanding  liabilities  Oct.  1,  1912,  to 

be  paid  out  of  1912  funds 50,000 .  00 

Total    • $660,339.06 


The  State  Printing  Board,  composed  of  the  Secretary  of  State, 
the  Comptroller  and  the  Attorney-General,  is  charged  by  statute 
with  the  duty  of  supervising  the  purchase  of  all  printing,  with 
directing  the  "form,  stvle  and  methods  of  the  execution  of  all 


8 

wjrk,"  and  with  advertising  I'oi  (*()ni])ctitivc  bids  and  letting  con- 
tracts for  said  work;  but,  by  the  terms  of  the  same  statute,  the 
I'rinting  Board  is  denied  even  the  power  to  determine  the  char- 
acter of  the  specitications  to  he  bid  upon,  or  the  quantities  of 
printing  to  be  ordered  or  contracted  for.  The  present  printing 
law  of  the  State  of  New  York  appears  to  have  been  especially 
well  designed  to  promote  extravagance  and  waste  and  to  absolutely 
prevent  any  effort  toward  economy.  The  Printing  Board  has  pro- 
mulgated such  rules  as  it  could  to  regulate  methods  of  ordering 
and  delivering  work,  but  the  limitations  upon  the  power  of  the 
Board  prevent  any  actual  control,  and  the  establishment  of  an  of- 
ficial board  under  such  conditions  is  only  a  pretense  at  protecting 
the  taxpayers  of  the  State.  The  experts  employed  by  your  Com- 
mittee are  unanimous  in  their  opinion  that  very  large  savings 
could  be  made  if  the  law  permitted  proper  methods  of  purchase 
and  regulation. 

Your  Committee  recommends  that  the  present  State  Printing 
Law  be  repealed,  and  that  the  acts  to  establish  a  State  Board  of 
Contract  and  Sui)ply  and  a  Department  of  Efficiency  and  Econ- 
omy, already  pending  in  the  Legislature,  be  enacted  into  law,  as 
an  effective  means  of  stopping  this  waste  of  public  funds.  Or,  if 
it  be  deemed  unwise  by  the  Legislature  to  establish  a  bureau  for 
the  purchase  of  all  supplies,  at  least  the  Printing  Law  should  be 
changed  so  as  to  make  it  possible  for  the  State  Departments  to 
purchase  printing  at  the  lowest  prices  obtainable.  We  have  had 
prepared  and  sent  to  the  Legislature  a  new  printing  law,  and 
wo  recommend  its  enactment  as  an  alternative  measure. 

Your  Committee  has  transmitted  a  copy  of  the  report  of  its 
examiners  to  the  State  Printing  Board,  with  some  suggested 
economies  that  appear  to  be  possible  under  the  provisions  of  the 
present  contract,  through  certain  changes  in  grades  of  paper. 

STATIONERY  AND  OFFICE  SUPPLIES. 

Stationery  and  office  suj^plies  are  used  in  very  large  quan- 
tities by  the  State  of  New  York,  but  the  State  purchases  these 
supplies  in  small  quantities  and  at  unreasonably  high  prices. 
Some  of  these  supplies  are  furnished  to  various  departments  by 
the  State  Comptroller's  office,  but  the  larger  portion  is  purchased 
by  the  departments  themselves  in  the  open  market.  Some  depart- 
ments —  for  instance,  the  Secretary  of  State  and  the  Conservation 
Commission  —  have  recently  made  an  effort  at  economy  in  this 


9 

line,  but,  even  in  these  departments,  the  prices  paid  are  far  in 
excess  of  what  is  reasonable. 

In  one  table  in  the  Comptroller's  Annual  Report  (page  95)  the 
cost  of  stationery  and  typewriter  supplies  paid  out  of  office  and 
general  expenses  account,  by  the  departments,  is  given  at  $32,- 
467.65.  This  is  only  a  small  part  of  the  total  purchases  of  this 
character.  It  is  not  possible,  without  a  laborious  analysis  of  all 
the  accounts  kept  by  the  various  departments  and  institutions, 
to  give  the  exact  amount  the  State  pays  in  any  fiscal  year  for 
stationery  and  office  supplies,  but,  we  believe,  a  conservative  esti- 
mate would  be  $80,000. 

The  establishment  of  a  central  purchasing  agency  for  supplies 
of  this  nature  would  easily  result  in  a  saving  of  $20,000  a  year. 

SINKING  FUND. 

We  are  ad^-ised  by  the  Comptroller  of  the  State  that  the  several 
sinking  funds,  kept  pursuant  to  law,  are  as  follows : 

(1)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
147  of  the  Laws  of  1903  for  the  improvement  of  the  Erie,  Oswego 
and  Champlain  canals,  a  total  issue  of  two  million  dollars,  par 
value. 

(2)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
147  of  the  Laws  of  1903  and  chapter  241  of  the  Laws  of  1900 
for  the  improvement  of  the  Erie,  Oswego  and  Champlain  canals, 
a  total  issue  of  twenty-one  million  dollars,  par  value. 

(3)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
147  of  the  Laws  of  1903,  chapter  302  of  the  Laws  of  1906,  chapter 
241  of  the  Laws  of  1909  and  chapter  66  of  the  Laws  of  1910,  for 
the  improvement  of  the  Erie,  Oswego  and  Champlain  canals,  a 
total  issue  of  forty  million  dollars,  to  which  is  to  be  added  an  issue 
of  twenty  million  dollars  contemplated  to  be  sold  in  the  current 
year. 

(4)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
391  of  the  Laws  of  1909  and  chapter  139  of  the  Laws  of  1910 
for  the  improvement  of  the  Cayuga  and  Seneca  canals,  a  total 
issue  of  three  million  dollars,  to  which  is  to  be  added  an  issue  of 
two  million  dollars  contemplated  to  be  sold  in  the  current  year. 

(5)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
746  of  the  Laws  of  1911,  for  barge  canal  terminals,  a  total  issue 
of  five  million  dollars,  to  which  is  to  be  added  an  issue  of  five 
million  dollars  contemplated  to  be  sold  in  the  current  year. 


10 

(G)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
479  of  the  Laws  of  1900  and  chapter  718  of  the  Laws  of  1907 
for  the  improvement  of  highways,  a  total  issue  of  thirty-four 
million  dollars,  to  which  is  to  be  added  an  issue  of  sixteen  million, 
dollars  contemplated  to  be  sold  in  the  current  year. 

(7)  For  the  retirement  of  the  bonds  issued  pursuant  to  chapter 
363  of  the  Laws  of  1910  for  the  improvement  and  extension  of 
Palisades  Interstate  Park,  a  total  issue  of  two  million  five  hun- 
dred thousand  dollars,  par  value. 

In  these  several  sinking  funds,  the  Comptroller,  after  the 
method  that  has  grown  up  in  his  office,  has  figured  that  there 
should  be  added,  by  appropriation  or  direct  tax,  for  the  fiscal  year 
beginning  October  1,  1913,  the  following  amounts,  viz.: 


Fund. 

Total  to  bo  added. 

For  principal. 

For  interest. 

(1)  supva.  . . 

$264,551   {jG 

$204,551  66 

$60,000  00 

(2)  supra.  .  . 

.     ■       925,930  S2 

295,930  82 

630,000  00 

(3)  supra.  .  . 

3,306,895  77 

906,895  77 

2,400,000  00 

(4)  supra. . . 

275,574  66 

75,574  66 

200,000  00 

(5)  supra. . . 

661,379  16 

261,379  16 

400,000  00 

(6)  supra. . . 

60,626  42 

30,626  42 

30,000  00 

(6)  supra. . . 

3,260,000  00 

980,000  00 

2,280,000  00 

(7)  supra. . . 

137,787  32 

37,787  32 

100,000  00 

Total  .. 

.      $8,892,745  81 

$2,792,745  81 

$6,100,000  00 

The  total  liability  for  the  fimded  debt  of  the  State  of  New 
York  on  December  31,  1912,  was  $106,472,660.  This  is  divided 
as  follows: 

Canals $69,407,660  00 

Highways 34,000,000  00 

Palisades   Interstate   Park    2,500,000  00 

Saratoga  Springs  State  Reservation   565,000  00 

Total $106,472,660  00 


The  bonds  of  the  Saratoga  Springs  State  Reservation  of 
$565,000  carry  with  them  no  imposition  of  a  sinking  fund. 

The  amount  of  the  funded  debt  as  of  the  given  date  for  which 
provision  has  been  made  for  sinking  fimd  is  $105,907,660, 


11 

Of  the  amount  of  bonds  anthorizcd,  but  not  yet  issued,  there 
are  $124,778,000.  The  analyses  respecting  the  purposes  for 
which  created,  show: 

For  canals $58,393,000  00 

For  highways   66,000,000  00 

For  Saratoga  Springs  State  Eeservation 385,000  00 

Total $124,778,000  00 

There  was  in  the  sinking  fund  of  the  State  of  l^&w  York  on 
December  31,   1912,  $22,304,040.95,  consisting  of, 

Investments $20,426,746  84 

Cash 1,877,294  11 

Total $22,304,040  95 

Analyzing  further  to  exhibit  the  relation  of  the  sinking  funds 
to  the  respective  bond  issues,  shows: 

Canal  debt  sinking  fund    $17,907,324  72 

Highway   debt  sinking  fund 4,320,913  76 

Palisades  Interstate  Park  sinking  fund 75,80'2  47 


Total $22,304,040  95 


If,  instead  of  the  practices  that  have  been  followed  by  the 
State,  the  sinking  fund  had  been  created  in  the  usual  and  cus- 
tomary manner  the  accumulations  as  of  December  31,  1912, 
would  have  been  $3,530,994.98,  or  an  amount  equal  to  $18,773,- 
045.97  less  than  the  actual  amount  of  the  accumulated  cash  and 
securities  on  hand  and  available  as  of  the  given  date. 

This,  analyzed  to  exhibit  its  relation  to  the  respective  issues, 
shows : 

Excess  in  the  canal  sinking  fund $15,347,840  54 

Excess  in  the  highway  sinking  fund 3,394,395  36 

Excess  in  the  Palisades  Interstate  sinking  fund  30,810  07 

Total  excess  in  sinking  funds $3  8,773,045  97 


12 

The  records  of  the  Conij)ti'(tllt'r  show  that  the  amount  to  the 
credit  of  the  sinkin£>-  fund  for  the  liighway  loan  of  one  niilliou 
($1,000,000)  dolhirs  at  three  per  cent,  pursuant  to  chapter  109 
of  the  Laws  of  1900,  and  amendments,  redeemable  December  1, 
1950,  was,  on  September  30,  1912,  $598,247.21.  Thus  it  ap- 
pears that  more  than  half  of  the  principal  had  accumulated  and 
the  bonds  had  a  further  life  of  forty-four  (-14)  years. 

It  is  submitted  that,  to  set  aside  two  per  cent  of  the  principal 
each  year  for  a  sinking  fund  on  a  debt  of  fifty  million  ($50,000,- 
000)  dollai's,  on  a  basis  of  investment  at  three  per  cent  com- 
pounded annually,  there  will  have  accumulated  in  thirty-one  years 
thereafter  $50,002,078.17,  and  the  bonds,  having  a  life  of "^  fifty 
years,  will  have  yet  to  run  a  period  of  nineteen  years. 

To  concede  that  this  theory  is  correct  is  to  grant  that  the  first 
three  decades  are  imposed  with  the  burden  of  this  debt;  that  the 
latter  two  decades  during  the  life  of  the  issue  are  relieved  of  any 
proportion  of  this  burden;  and,  further,  too,  they  are  presented 
with  the  public  utility,  free  of  debt,  and  the  accumulations  on 
fifty  million  dollars  for  iiineteen  ^^ears  —  a  sum  amounting  to 
thirty-seven  million,  six  hundred  and  seventy-seven  thousand, 
and    eighteen  dollars  ($37,077,018). 

Believing  it  to  be  a  matter  of  a  grave  nature  to  suggest  any  de- 
parture from  the  practices  in  ^•ogue  concerning  the  sinking  fund, 
our  Examiner,  with  the  consent  and  approval  of  the  Governor 
and  your  Committee,  sought  the  advices  of  nine  gentlemen  in  the 
city  of  New  York  whose  reputation  as  financiers  extends  to  every 
quarter  of  the  United  States.  Included  among  these  men  were 
some  of  the  large  buyers  of  the  State  securities.  None  of  these 
gentlemen  knew  that  there  was  in  the  sinking  fund  an  amount  in 
excess  of  the  requirement  under  the  usual  and  customary  amorti- 
zation plan.  Their  advices  can  be  generally  conveyed  in  the 
statement  that  it  is  their  opinion  that  a  clear,  concise  statement 
of  affairs  should  be  given  to  the  people  showing: 

(1)  The  amiual  contributions  made  to  the  sinking  fund 
have  been  largely  in  excess  of  the  requirements. 

(2)  There  is  an  excess  in  the  sinking  fund  to-day  equal 
to  many  millions  more  than  is  necessary. 

(3)  The    practices    in    vogue    operate    against    the  time 
honored  principles  of  funding  a  debt. 


13 


(4)  The  expense  and  burden  of  the  pulilic  debt  is  in- 
equitably distributed. 

(5)  That  the  present  administration  proposes  to  relieve 
the  situation  by  reducing  annual  contributions  to  the  sinking 
funds  until  such  time  as  the  total  amount  in  the  sinking 
funds  shall  represent  the  correct  proportion  of  the  total 
amount  required  for  the  redemption  of  the  bonds  at  maturity. 
Then,  and  thereafter,  contributions  should  be  made  to  the 
sinking  fund  in  amounts  sufficient  only,  under  the  usual  niul 
customary  plan  of  amortizing  a  debt,  to  discharge  the  prin- 
cipal at  maturity. 

(6)  And  that  the  Governor  and  the  Committee  of  In- 
quiry have  advised  with  men  of  finance,  having  the  knov;l- 
edge  and  ability  that  come  from  experience,  and  a  correction 
of  the  practices  will  not  operate  to  put  the  State  in  jeopardy 
either  as  to  the  State's  relation  to  the  securities  already  is- 
sued or  concerning;  the  future  sale  of  State  bonds. 


In  conclusion,  your  committee  recommends: 

That  inasmuch  as  the  greatest  proportion  of  the  excess 
was  accumulated  within  the  past  seven  years,  that  the  ad- 
justment, operating  to  correct  the  abuses,  should  be  made 
effective  immediately,  to  the  end  that  the  same  decade  re- 
ceives the  benefits  of  such  corrections  as  far  as  is  possible. 

That  the  request  of  the  Comptroller  to  appropriate 
$9,022,245.81  out  of  the  revenues  for  the  fiscal  year  be- 
ginning October  1,  1913,  described  as  being  for  contribu- 
tions to  the  Sinking  Fund  and  interest  on  the  bonded  in- 
debtedness, inclusive  of  interest  on  bonds  estimated  to  be 
outstanding  during  the  year,  be  reduced  to  $129,500  to  the 
fund  to  liquidate  the  principal  and  interest  on  the  Saratoga 
Springs  State  Reservation  bonds,  and  one  hundred  dollars 
($100)  to  each  of  the  seven  funds  to  liquidate  various  canal 
and  highway  bonds,  or  a  total  amount  to  be  "  imposed  and 
collected  "'  of  $130,200.  In  view  of  the  fact  that  the  balance 
of  the  proposed  levy  for  this  year  ($8,892,045.81)  was  im- 
posed and  collected  in  previous  years,  and  that  there  still 
remains  in  the  sinking  fund  a  very  large  surplus  to  be  applied 


14 

to  tlie  reduction  of  future  contributions,  the  provisions  of 
the  Constitution,  directing  the  manner  of  cstal)lishing  and 
maintaining  a  fund  sufficient  to  disclinrg-c  the  debt  at  ma- 
turity, have  been  fulfilled. 

In  confirmation  of  our  recommendation  upon  this  subject,  we 
submit  liercwith,  and  as  a  part  of  this  report,  the  opinion  of  our 
counsel. 

CANAL  CLAIMS  AND  BOARD  OF  CLAIMS. 

Growing  out  of  the  construction  of  the  Barge  Canal,  and  the 
appropriation  of  lands  in  connection  therewith,  there  are  now 
pending  against  the  State  about  two  thousand  four  hundred  claims 
for  damages. 

Under  the  act,  the  State,  by  filing  a  notice  of  appropriation,  is 
entitled  to  enter  into  the  possession  of  the  land  and  dispossess  the 
OMTier  therefrom  without  making  compensation,  unless  an  agree- 
ment as  to  value  is  arrived  at.  Where  an  agreement  is  not 
reached,  the  State,  in  good  faith,  should  provide  a  method  of 
settlement,  or  a  tribunal  before  whom  the  value  of  the  property 
taken  should  be  quickly  determined  and  the  moneys  paid  to  the 
owners. 

Under  the  present  procedure,  a  large  number  of  claims  have 
accumulated,  and  the  present  judicial  system  of  handling  these 
claims  is  absolutely  inadequate  to  quickly  and  promptly  dispose 
of  them.  It  is  impossible  for  the  present  Board  of  Claims  to 
handle  all  the  business  before  it  promptly  and  with  dispatch,  and 
it  is  necessary  that  some  method  should  be  adopted  whereby 
people  having  claims  against  the  State  can  receive  a  prompt  de- 
cision. This  is  not  only  desirable  for  the  benefit  of  the  claimants, 
but  also  for  the  State,  on  account  of  the  large  interest  charges 
accumulatiiii^  on  these  claims.  The  saving  of  interest  alone  will 
easily  meet  the  additional  temporary  expenses  recommended  for 
the  prompt  disposition  of  the  claims. 

We  believe  that  the  Court  of  Claims  should  be  temporarily  in- 
creased in  its  membership  by  an  additional  three  members,  and 
that  the  judges  of  the  Court  of  Appeals  whose  terms  of  office  have 
expired  by  age  limitation,  and  who  are  available  under  the  statute 
for  such  work,  be  authorized  to  hear  such  claims  as  the  Attorney- 
General  may  see  fit  to  submit  to  thom.  bcoause  of  their  experience 
and  of  the  legal  questions  involved. 


n 


ommissionei 
Adniinistra 
;cretary .... 
ssistant  seel 
hief  clerk . . , 
;enographer 
lerk  and  ste 
ige  or  junio 
lerk  or  sten( 
lerk  or  stem 
Examinatic 
hief  examin, 
xaminer. . 
xaminer. . 
xaminer. . 
benographer 
xaminer. . . 

age._ I 

xaminer. .  .  < 
lerk  or  steni 
tenographer 
lerk  or  steni 
Ixaminer. . 

Totals. 


JIUCLCU    LiicicwJ  Lii,    uiiLi    iittu    cnieiui    luuLca    mauc    ux    e-vpuiiui iiii t;.'^ 


SCHEDULE   B 
STATE  CIVIL  SERVICE  COMMISSION 


TITLE  OF  APPROPRIATION 


Kxpenses  of  commissioners 

Expenses  of  secretary 

Ixpenses  of  chief  examiner 

Ixpenses  of  examiners  and  stenographers 

Ixpenses  of  examinations 

ffice  expenses 

ostage  and  transportation 

ample  examination  papers  and  civil  list. 

Totals 


Amount 

EftTIUATE  FOR  Y'eaR  191-3  COM- 
PARED  WITH   Appropriation 
FOR  Y'eab  1905 

Estimate  for  Yeah  1913  Com- 
pared   WITH    ApPBOPRIATIOM 
FOR  Y'ear  1912 

Year  1907 

Y 

oar  1909 

YKAR 

—  ion 

Year  1912 

Estimate 
year  1913 

amodnt  of  — 

AMOrXT  OF 

Year  1905 

Appropriated 

Expended 

Increase              Decrease 

Increase 

Decrease 

$1,800 
250 

$1,500 

150 

400 

100 

7,000 

2,. 500 

1,800 

} 

$1,600 
250 

500 

10,000 
2,500 
2,500 

$1,600 
2.50 

500 

10,000 
2,500 
2,000 
1,000 

$1,600 
250 

500 

10,000 
2,500 
2,000 
1,000 

3,400 

10,000 

3,000 

2,500 

SOO 

3,400 

10,000 

3,000 

2,500 

800 

850 

5,000 

1,000 

700 

SOO 

400 

100 

5,000 

2,000 

1.800 

' 

$11,350 

$13,450 

$17,350 

$17,850 

$17,850 

$19,700 

$19,700 

$8,350 

1 

SCHEDULE  C— CIVIL  LIST  OF  EMPLOYEES 
STATE  CIVIL   SERVICE  COMMISSION 


Address  when  appoioted 


Title  of  position  when 
appointed 


Dale  of  original 

appointment 


Rate  of 
oiigiDal 
salary 


Present  title  of  position 


Date  of 
appointment  to 
present  portion 


lUte  of 
present  salarj' 


If  veteran 
specify 
whether 
soldier  or 
firemen 


Whether  position 


If  position  is  mandatory  give  chapter, 
section  and  year 


Jacob  Neu 

MeyerWolff,  M.  D 

lames  A.  Lavery 

John  C.  Birdseye 

Geo.  R.  Hitchcock 

Julia  M.  Ryan 

Elizabeth  S.  VanVranken 

May  J.  Fee 

Loretto  A.  Hearley 

Mary  L.  Comstock 

Justina  M.  Grogan 

fraoces  M.  Devanna 

Raymond  T.  Jones 

■Um.  J.  Mahar 

Harold  N.  Saxton 

P.  H,  ParthesiuB 

John  W.  Root 

Herbert  E.  Hayes 

Wm.  L.  Chase 

Charles  W.  Latimer 

Georgia  G.  Smith 

Edna  Henry 

I^IabelP.  Vanderpoel.... 

Catherine  C.  Geier 

John  E.  Carpenter 

Cornelius  W.  Gray 


Brooklyn 

New  York 

Poughkeepsie 

Porapev.  Onondaga  Co 

Little  Falls , 

Albany 

Water\iiet 

Albany 

Albany , 

Albany 

Albany 

Albany 

Albany 

Albany , 

New  Rochelle 

Troy 

Hoosick  Falls 

Albany 

Palmyra 

Buffalo 

Kingston 

Niagara  Falls 

Hudson , 

Albany , 

Cohoes 

Albany. , 


Commissioner 

Commissioner 

Commissioner 

Clerk  and  messenger 

Stenographer 

Junior  clerk 

Stenographer 

Stenographer 

Stenographer 

Stenographer 

Stenographer 

Junior  clerk 

Page 

Page 

Chief  examiner 

Examiner 

Examiner 

Examiner 

Examiner 

Examiner 

Junior  clerk 

Stenographer. 

Stenographer 

Stenographer 

Page 


Jan. 
Jan. 
Jan. 
June 
Jan. 
Feb. 
July 
July 
Mar. 
Oct. 
Feb. 
July 
July 
May 
June 
June 
Aug. 
Feb. 
Jan. 
July 
Mar. 
Jan. 
Nov. 
Aug. 
Nov. 
Nov. 


7, 1913 
^  1913 
,1913 
,1884 
,1900 
,1899 
,1905 
.,  1910 
.,  1911 
.,  1911 
',  1912 
,  1911 
,1910 
,1912 
,1909 
,1909 
.,  1906 
,1910 
,1910 
,1912 
,1911 
,1907 
,1908 
,  1911 
,1909 
1, 1912 


S3, 000  00 

3,000  00 

3,000  00 

900  00 

840  00 

600  00 

900  00 

600  00 

600  00 

480  00 

600  00 

480  00 

360  00 

360  00 

3,000  00 

1,800  00 

1,000  00 

1,200  00 

900  00 

1,000  00 

600  00 

600  00 

600  00 

600  00 

360  00 

360  00 


Commissioner 

Commissioner 

Commissioner 

Secretary 

Assistant  secretary. . 

Chief  clerk    

Stenographer 

Stenographer ...... 

Stenographer 

Stenographer 

Stenographer ...... 

Clerk 

Junior  clerk 

Page 

Chief  examiner 

Examiner 

Examiner 

Examiner 

Examiner 

Examiner 

Clci'k  and  examiner. 

Stenographer 

Stenographer 

Stenographer 

Clerk 


Jan, 
Jan, 

Jan.  7, 
Sept.  1 
Feb.  14 
Feb.  14, 
Julv  1 
Julv  5, 
Mar.  16, 
Oct.  23, 
Feb.  10, 
Oct.  1 
Oct.  1 
May  7, 
June  1 
June  1 
Aug 
Feb. 
Jan. 
July  1, 
Nov.  1 
Jan.  21 
Nov.  1 
Aug.  7, 
Oct.  1 
Nov.  18, 


,1913 
,1913 
,1913 
,1900 
.1907 
,  1907 
,1905 
,1910 
.,  1911 
,1911 
,  1912 
,  1912 
,1911 
.  1912 
,1909 
,1909 
..  1906 
,1910 
,1910 
,1912 
,1911 
,1907 
,1908 
,1911 
,1912 
i,  1912 


S3, 000  00 
3,000  00 
3,000  00 
4,000  00 
2,000  00 


1,700  00 

1,300  00 

900  00 

900  00 

720  00 

600  00 

720  00 

600  00 

480  00 

3,600  00 

2,500  00 

2,000  00 

1,300  00 

1,200  00 

1,200  00 

900  00 

1,000  00 

1,000  00 

720  00 

720  00 

360  00 


Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive . 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 
Competitive. 


Chap.  15,  Sec.  3,  Laws  of  1909. 
Chap.  15,  Sec.  3,  Laws  of  1909. 
Chap.  15,  Sec.  3,  Laws  of  1909. 
Chap.  15,  Sec.  4,  Laws  of  1909. 


Chap.  15,  Sec.  4.  Laws  of  1909. 


SCHEDULE  A 
STATE  CIVIL  SERVICE  COMMISSION 


TITLE  OF  POSITION 


Commissioner 

Administration  Division: 

Seeretan,' 

Assistaot  secretary 

Chief  clerk 

SteDographer 

Clerk  and  stenographer, . , , 

Page  or  junior  clerk 

Clerk  or  stenographer 

Clerk  or  stenographer 

Examinations  Division; 

Chief  examiner 

Examiner 

Examiner 

Examiner 

Stenographer 

Examiner 


Page. 

Examiner. 

Clerk  or  stenographer . 

Stenographer 

Clerk  or  stenographer . 
Examiner 


Totals. 


No.  of 
incum- 
bents 


$9,000 

3,300 

1,500 

1,200 

900 

600 

360 


3,600 
2,000 
1,500 
1,000 
1,800 


$26,760 


$9,000 

3,600 

1,500 

1,200 

900 

600 

360 


3,600 
2,000 
1,500 
1,000 
1,800 
1,200 
360 


$28,620 


No.  of 
incum- 
bents 


$9,000 

4,000 

1,800 

1,200 

900 

600 


3,000 
1,800 
1,500 
1,200 
1,800 
1,200 

360 
1,000 

600 


$30,440 


No.  of 

incum- 
bents 


20 


$9,000 

4,000 
2,000 
1,500 
1,200 
1,440 
480 


3,600 
2,000 
1,800 
1,200 
1,800 
1,200 

360 
1,000 

600 


$33,180 


No.  of 

incum- 
bents 


26 


$9,000 

4,000 
2,000 
1,700 
1,300 
1,800 
600 
1,200 
1,440 

3,600 

2,500 

2,000 

1,300 

2,000 

1,200 

480 

1,200 

720 

720 

600 


$39,360 


Estimate  for 
YEiR  1913 


No.  of 
incum- 
bents 


27 


$9,000 

4,000 
2,000 
1,700 
1,300 
1,800 
600 
1,200 
1,440 

3,600 

2,500 

2,000 

1,300 

2,000 

1,200 

480 

1,200 

720 

720 

600 

2,400 


$41,760 


ESTIUATB  FOB  YeAR   1913  COMPARED 

WITH  Apphopbiation  FOR  Yeah  1905 


INCREASE 


$700 

500 

500 

400 

1,200 

240 

1,200 

1  440 


500 
500 
300 
200 

1,200 
480 

1,200 
720 
720 
600 

2,400 


$15,000 


DECREASE 


No.  of 
incum- 
bents 


Estimate  for  Yeab  1913  Compared 
WITH  Appropriation  for  Yeah  1912 


DECREASE 


$2,400  I 
$2,400 


1$ 

In  order  to  carry  these  recommendations  into  effect,  we  approve 
of  the  bill  introduced  by  Senator  Blauvelt,  and  also  approve  of 
the  additional  recommendations  of  the  Attorney-General  as  to 
making  available  the  services  of  retired  judges  of  the  Court  of 
Appeals. 

These  additional  agencies,  however,  will  only  help  in  a  small 
way  to  affording  any  prompt  and  effective  relief,  and  we  believe 
that  the  number  of  claims  is  so  large,  and  the  importance  to  the 
litigants  is  so  great,  that  some  additional  method  should  be  pro- 
vided for  the  purpose  of  trying  to  adjust  and  settle  these  claims 
out  of  court.  The  board  of  water  supply  of  the  city  of  Kew  York, 
which  had  a  large  number  of  similar  claims  against  it,  finally 
procured  legislation  providing  for  the  appointment  by  it  of  a 
commission  to  adjust  claims  by  means  of  negotiating  with  the 
owners,  with  power  of  recommending  settlements  to  the  board. 
We  believe  that  the  Canal  Board  of  the  State  should  have  the 
power  to  appoint  a  small  commission  who  should  be  authorized 
to  take  up  for  adjustment  all  the  claims  now  on  file,  and  with 
power  to  make  recommendations  to  the  Canal  Board  for  settle- 
ment, and  we  recommend  legislation  to  this  effect. 

PLAN  OF  WORK  OF  COMMITTEE. 

Immediately  upon  the  organization  of  the  Committee  of 
Inquiry,  we  prepared  blank  schedules  upon  which  every  depart- 
ment, bureau  and  office  of  the  State  was  required  to  submit  infor- 
mation showing  the  cost  of  these  departments  for  the  years  1905, 
1907,  1909,  1911,  1912,  and  their  estimates  for  1913.  The 
attached  sheets.  Schedules  "A"  and  "  B,"  filled  out  by  the  Civil 
Service  Commission,  illustrate  these  forms. 

In  addition,  we  also  required  each  department  to  furnish  us 
with  the  civil  list  of  employees,  showing  the  names  and  number 
of  all  their  employees,  when  appointed,  title  of  position  when 
appointed,  date  of  original  appointment,  rate  of  original  salary, 
present  title  of  position  and  date  of  appointment  to  present 
position,  and  the  attached  sheet,  Schedule  "  C,"  will  show  the 
report  made  to  us  by  the  Civil  Service  Commission  on  this  branch 
of  the  work. 

We  also  had  prepared  copies  of  the  Appropriation  Bills  and 
Supply  Bills,  showing  the  amounts  asked  for  this  year,  the 
amounts  allowed  in  1912  and  the  increases  and  decreases  con- 
nected therewith,  and  had  careful  tables  made  of  expenditures 


14 


ann  ot  tne  logai  qnosnons  mvoivon. 


1$ 

lu  order  to  carry  these  recommendations  into  effect,  we  approve 
of  the  bill  introduced  by  Senator  Blauvelt,  and  also  approve  of 
the  additional  recommendations  of  the  Attorney-General  as  to 
making  available  the  services  of  retired  judges  of  the  Court  of 
Appeals. 

These  additional  agencies,  however,  will  only  help  in  a  small 
way  to  affording  any  prompt  and  effective  relief,  and  we  believe 
that  the  number  of  claims  is  so  large,  and  the  importance  to  the 
litigants  is  so  great,  that  some  additional  method  should  be  pro- 
vided for  the  purpose  of  trying  to  adjust  and  settle  these  claims 
out  of  court.  The  board  of  water  supply  of  the  city  of  jSTcw  York, 
which  had  a  large  number  of  similar  claims  against  it,  finally 
procured  legislation  providing  for  the  appointment  by  it  of  a 
commission  to  adjust  claims  by  means  of  negotiating  with  the 
owners,  with  power  of  recommending  settlements  to  the  board. 
We  believe  that  the  Canal  Board  of  the  State  should  have  the 
power  to  appoint  a  small  commission  who  should  be  authorized 
to  take  up  for  adjustment  all  the  claims  now  on  file,  and  with 
power  to  make  recommendations  to  the  Canal  Board  for  settle- 
ment, and  we  recommend  legislation  to  this  effect. 

PLAN  OF  WORK  OF  COMMITTEE. 

Immediately  upon  the  organization  of  the  Committee  of 
Inquiry,  we  prepared  blank  schedules  upon  which  every  depart- 
ment, bureau  and  office  of  the  State  was  required  to  submit  infor- 
mation showing  the  cost  of  these  departments  for  the  years  1905, 
1907,  1909,  1911,  1912,  and  their  estimates  for  1913.  The 
attached  sheets.  Schedules  "A"  and  "  B,"  filled  out  by  the  Civil 
Service  Commission,  illustrate  these  forms. 

In  addition,  we  also  required  each  department  to  furnish  ns 
with  the  civil  list  of  employees,  showing  the  nam.es  and  number 
of  all  their  employees,  when  appointed,  title  of  position  when 
appointed,  date  of  original  appointment,  rate  of  original  salary, 
present  title  of  position  and  date  of  appointment  to  present 
position,  and  the  attached  sheet.  Schedule  "  C,"  will  show  the 
report  made  to  us  by  the  Civil  Service  Commission  on  this  branch 
of  the  work. 

We  also  had  prepared  copies  of  the  Appropriation  Bills  and 
Supply  Bills,  showing  the  amounts  asked  for  this  year,  the 
amounts  allowed  in  1912  and  the  increases  and  decreases  con- 
nected therewith,  and  had  careful  tables  made  of  expenditures 


16 


for  the  year  1012,  showing  iiioiiey&  actually  expended  and  iinex- 
{xmkUmI  l)alanc'es  on  hand,  if  any,  in  each  department. 

With  the  (hita  secured  from  the  scheduk's  furnished  and  the 
general  knowledge  gained  by  the  examination  of  witnesses,  we 
have  been  able  to  completely  revise  the  estimates  for  which 
appropriations  were  requested,  and  we  have  prepared  for  printing 
and  submission  to  the  Legislature  a  new  Appropriation  and  a  new 
Supply  l>ill,  containing  the  items  recommended  by  us. 

In  connection  with  our  work,  we  personally  conferred  with  the 
head  of  every  department,  board,  bureau  and  commission  of  the 
State,  and  discussed  the  matters  connected  with  the  same,  and 
also  required  the  heads  of  all  departments,  boards,  bureaus  and 
commissions  to  appear  in  person  at  public  hearings  for  examina- 
tion as  to  the  items  in  the  schedules  submitted,  their  methods  of 
purchasing  supplies,  and  in  general  the  whole  administration  of 
their  departments.  We  also  held  a  large  number  of  evening 
sessions.  We  have  sought  information  from  every  source  as  to 
eiRcient  and  economical  methods  of  administration,  and  have 
urged  upon  the  heads  of  departments  the  necessity  for  the  elimi- 
nation of  useless  offices  and  the  amalgamation  of  bureaus  that 
were  doing  the  same  kind  of  work. 

During  the  inquiry  there  appeared  before  the  Committee  117 
witnesses,  who  were  sworn,  and  hearings  were  also  accorded  to  a 
large  number  of  delegations,  at  which  a  number  of  speakers 
appeared  and  presented  their  views,  and  in  all  3,618  pages  of 
testimony  were  taken. 

In  a  great  many  cases,  after  these  conferences  and  hearings,  we 
were  able  to  come  to  an  agreement  with  the  heads  of  the  depart- 
ments to  revise  do^vnward  their  estimates  for  the  comine;  vear, 
and  in  only  a  few  cases  was  there  a  dispute  between  us  and  the 
heads  of  the  departments  as  to  the  amounts  of  money  which  should 
be  appropriated.  We  have  not  tried  to  arbitrarily  scale  down  any 
department,  but  tried  to  base  the  determination  upon  the  actual 
needs,  and  wherever  increases  are  ab^olut-ely  necessary  we  have 
allowed  them. 

The  following  is  a  summary  of  the  Appropriation  and  Supply 
Bills  as  recommended  by  us: 


17 


Ex 

Ad 


a 


SCHEDULE  OF  APPROPRIATIONS  FOR  THE  YEAR   1913  ^  {continued) 


DEPARTMENTS 


Penal: 

Prison  department 

State  prisons 

Dannemora  hospital 

Great  Meadows  prison 

Matteawan  hospital 

Sing  Sing  prison 

State  Farm  for  Women,  Valatie. 

Prison  for  Women 

State  Commission  of  Prisons.  .  .  . 

Board  of  Classifiration 

Commission  on  New  Prisons .  .  .  . 

Probation  commission 

Board  of  parole 

Penitentiaries 

Transportation  of  convicts 


Total. 


Curative: 
State  Hospital  Commission. 

State  Hospitals 

Binghamton  State  Hospital . 
Buffalo  "  " 

Central  Islip       "  " 

Gowanda  "  " 

Hudson  River     "  '* 

Kings  Park         "  " 

Long  Island        "  " 

Manhattan         "  " 

Middletown       "  " 

Mohansic  "  " 

Rochester  "  " 

St.  Lawrence      "  " 

ITtica 
Willard 


Total. 


Charitable: 

Board  of  Charities 

Salary  classification  commission 

Fiscal  Supervisor 

Purchasing  committee 

Craig  Colony,  Sonyea 

Custodial  Asylum,  Newark 

Eastern  New  York  Reformatory,  Napanoch. . . 

Elmira  State  Reformatory 

Hospital  for  Crippled  and  Deformed  Children, 
West  Haverstraw 

Hospital  for  Tuberculosis,  Ray  Brook 

House  of  Refuge,  Randalls  Island 

Letchworth  Village 

Reformatory  for  Women,  Bedford 

Rome  Custodial  Asylum 

Soldiers  and  Sailors'  Home 

State  Agricultural  and  Industrial  School 

School  for  the  Blind,  Batavia 

Syracuse  Institution  for  Feeble-Minded  Chil- 
dren   

Thomas  Indian  School,  Iroquois 

Training  School  for  Bov<!,Yorktown  Heights,  ,  . 

'i'raining  School  for  Girls,  Hudson  

We.stern  House  of  Refuge  for  Women,  Albion 

Women's  Relief  Corps  Home,  Oxford 


Total. 


121 


Appropriation  Made  bt  the  Legislature 
OP  1912 


General 

Appropriation 

Bill 


Supply 
BUI 


38,000  00 
770  000  00 
100,000  00 


190,000  00 


25,000  00 

26,000  00 

17,400  00 

1,700  00 


11,470  00 

9,200  00 

100,000  00 

15,000  00 


1,041  65 
37,800  00 

"i^SOO  00 

30,000  00 

1,500  00 


800  00 

'3^75606 
150  00 
300  00 


1,303,770  00 


176,220  00 


437,070  50 
377,084  00 
732,198  00 
207,936  95 
568,491  00 
643,069  00 
206,470  50 
754,616  86 
375,10s  00 
69,090  00 
295,587  50 
388,407  50 
318,349  36 
431,412  20 


5,981,111  37 


117,060  00 


63,580  00 
3,400  00 
215,128  98 
116,000  00 
105,000  00 
301,000  00 

27,280  00 
67,076  67 
129,386  42 
54,200  00 
86,450  00 
179,389  83 
134,033  11 
185,000  00 
49,050  00 

90,021  21 
38,100  00 
18.000  00 
1U7,0U0  00 
59,380  00 
34,. 833  IS 


2,180,369  40 


11,. 337  70 
637,750  00 


449  00 

5,825  90 

18,942  00 

35,000  00 

90,000  00 

799,304  60 


21, .383  07 

1,150  00 

7,083  00 

500  00 

42,. 500  00 

5,000  00 

3,000  00 

.62,500  00 

1,000  00 
60,000  00 

Uiooo  00 
17,500  00 

175^284  60 

12,000  00 

1,700  00 

24,500  00 
2,000  00 

17,174  34 
3,000  00 
5,200  00 


476,477  01 


Total 


39,041  05 

807,800  00 

100,000  00 

1,800  00 

220,000  00 

1 ,500  00 

25,000  00 

26,000  00 

18,200  00 

1,700  00 

3,750  00 

11,620  00 

9,500  00 

100,000  00 

15,000  00 


1,380,911  65 


187,0.57  70 
637,750  00 
437,070  50 
377,084  00 
7.32,647  00 
207,936  95 
574,316  90 
643,069  00 
225,412  50 
754,616  86 
375,108  00 
69,090  00 
.330.587  50 
388,407  50 
408,349  36 
431,412  20 


6,780,415  97 


138,443  07 

1,150  00 

70.665  00 

3,900  00 

257,628  98 

121,000  00 

108,000  00 

363,500  00 

28,280  00 
127,070  07 
129,3.86  42 

68,200  00 
103,950  00 
179,. 389  83 
309.317  71 
197,000  00 

50,7.50  00 

114,521  21 
40,100  00 
18,000  00 

124,174  34 
62.380  00 
40.033  18 


2.656.846  41 


Appropriation  Desired  op  the  Legislature 
OF  1913 


General 

Appropriation 

BiU 


Supply 
Bill 


Total 


41 , 100  00 
840.000  00 
125.000  00 


200,000  00 

'  36! 000  00 

30,000  00 

20, 400  00 

1,700  00 

"14^60000 

9,200  00 

100,000  00 

15,000  00 


1,427,000  00 


216,310  00 

'6il!200  06 
451,000  00 
897,750  00 
246,100  00 
697,500  00 
828,000  00 
216,000  00 
979,200  00 
462,000  00 
.52,. 500  00 
343,125  00 
406.800  00 
401,400  00 
504,000  00 


7,212,885  00 


151,260  00 

"77^.3.50  00 
2,S00  00 
295,000  00 
120.000  00 
115.000  00 
355,000  00 

32,000  00 
146,000  00 
150,000  00 

68,450  00 
110,000  00 

210,000  on 

335,000  00 

206,000  00 

56,000  00 

120,000  00 
44.000  00 

40,000  00 

132,000  00 
68,000  00 
45,000  00 


2,878,800  00 


45,400  00 

20,000  00 

1,800  00 

4,000  00 


800  00 


750  00 
650  00 


73,400  00 


8,196  83 
821,197  71 


3,500  00 


2,500  00 

ilsoo  06 
'2!666'66 


839,194  54 


14,000  00 
1,160  00 
4,000  00 

28^000  00 
5,000  00 


3,000  00 
18,000  00 


16,500  00 
25,000  00 
20,000  00 
16,000  00 
2,000  00 

10,000  00 
5,000  00 

l.S.OOO  01) 
6,000  00 
4,000  00 


190,160  00 


41 ,  100  00 

885  400  00 

145,000  00 

1,800  00 

204,000  00 

'  30^666  66 

30,000  00 

21,200  00 

1,700  00 

750  00 

15,250  00 

9,200  00 

100,000  00 

15,000  00 


1,500,400  00 


224,506  S3 
821,197  71 
511,200  00 
454,500  00 
897,750  00 
246,100  00 
697,500  00 
828,000  00 
216,000  00 
981,700  00 
462,000  00 
52,. 500  00 
344,925  00 
406,800  00 
403,400  00 
504,000  00 


8,052,079  54 


165,260  00 

1 , 160  00 

81  ..S50  00 

2,800  00 

.323,000  00 

125,000  00 

115.000  00 

355.000  00 

35,000  00 
164,000  00 
150,000  00 

68,450  00 
126,500  00 
235,000  00 
3.55,000  00 
222,000  00 

58,000  00 

130,000  00 
49,000  00 
40,000  00 

1.50,000  00 
74,000  00 
49,000  00 


3,075,020  00 


Amounts  Recommended  by  Committee 


General 

Appropriation 

BiU 


38,300  00 
7.30,000  00 
100,000  00 


190,000  00 

"iio6oo6 

15^700  06 
1,700  00 

"ii',470  06 
8,700  00 

" '5^060  06 


,101,870  00 


155,080  00 

472^363  06 
405,527  00 
830,740  00 
226,341  00 
641,137  00 
755,273  00 
201,455  00 
891,927  00 
428,600  00 
49,773  00 
316,923  00 
396,754  00 
372,273  00 
462,764  00 


6,606,930  00 


117,680  00 

"7i^93d'.^J 
2,800  00 
291,500  00 
120,000  00 
115.000  00 
355,00^1 11 

32,000  00 

46,000  00 
150,000  00 

66,9.50  00 
110,000  00 
209,000  00 
175,000  00 
206,000  00 

56,000  00 

115,050  00 
44.000  00 

2o.aio  00 

132,UU0  00 
68.000  00 
45,000  00 


2,548,910  00 


Supplv 
BiU' 


$  43,000  00 

20,000  00 

1,800  00 

14,000  00 


800  00 
'650  00 


80,250  00 


600,750  00 


1,800  00 

'2!666'o6 


604,550  00 


8,000  00 

750  00 

4,500  00 


160,000  00 


173,250  00 


38,300  00 

773,000  00 

120,000  00 

1,8(X)  00 

204,000  00 

'ijooooo 
"  16^560  00 

1,700  00 

'  12^120  00 
8,700  00 

'siooo  00 


1,182,120  00 


155,0,80  00 
600,750  00 
472.363  00 
405.527  00 
8.30,740  00 
226,341  00 
641,137  00 
755,273  00 
201,455  00 
891,927  00 
428,600  00 
49,773  00 
318,723  00 
396,754  00 
374,273  00 
462,764  00 


7,211,480  00 


125,680  00 

750  00 

76,430  00 

2,800  00 

291,500  00 

120.1X10  00 

115.000  00 

355,000  00 

32,000  00 

46, OM  00 
150,000  00 

66,950  00 
110,000  00 
209,000  00 
3.35,000  00 
206,000  00 

56,000  00 

115,0.50  00 
44.0110  00 

20.000  00 

l.JJ.OOO  00 
OS. 000  00 
45,000  00 


Aa  Compared  with  1912 
Appropp.iatio.v 


Recommended 


Decrease 


S    20,000  00 


500  00 


20,500  00 


35,292  50 
28.443  00 
98,093  00 
18,404  05 
66,820  10 
112,204  00 

137i3io'l4 
53,492  00 


8,346  50 

3l!35i'86 


589,757  09 


5,765  00 

33,871  02 

7,000  00 

3,720  00 

20,613  58 

722.100  00 


6.050  00 
29.610  17 
25.6S2  29 
9,000  00 
5,250  00 

52S  79 
3,900  00 
2,000  00 
7..SJ5  uj 
5.620  00 
4,966  S2 


171,403  33 


741  65 
34,800  00 


16,000  00 

1,500  00 

24,000  00 

26,000  00 

1,700  00 

3J50  06 

SOOOO 

100,000  00 
10,000  00 


219,291  65 


32.477  70 
37,000  00 


23,957  50 


19,317  00 
11,864  50 

34!076  36 


158,693  06 


12,763  07 
400  00 

"iiiooM 
"iiooooo 
"8i566'66 

8i^676'67 
1^250  66 


100.089  74 


SCHEDULE  OF  APPROPRIATIONS  FOR  THE  YEAR   1913  —  {continued) 


Appkopeiation  Made  by  the 
OF  1912 

Legislature 

Appropriation  Desired  of  the  Legislature 
or  1913 

Amounts  Rh 

COMMENDED  BY 

Committee 

As  Compared  with  1912 
Appropriation 

DEPARTIIEXTS 

General 

Appropriation 

Bill 

Supply 
Bill 

Total 

General 

Appropriation 

Bill 

Supply 
Bill 

Total 

General 

Appropriation 

Bill 

Supply 

Bill' 

Total 

Recommended 

Increase 

Decrease 

Protective: 

S          1,000  00 
253,. 3.50  00 
580,550  00 
119,020  00 
10,000  00 
8,526  67 
40,400  00 

$      4,550  00 
97,130  58 
136,004  59 

S          5,5.50  00 

350,480  58 

716,554  59 

119,020  00 

17,121  39 

8,526  67 

81,281  00 

20.500  00 

3,500  00 

1,100  00 

15,720  00 

12,055  00 

2,300  00 

1,350  00 

6,7.30  00 

600  00 

10,000  00 

4,350  00 

3,750  00 

200  00 

300  00 

13,500  00 

9,720  00 

16,000  00 

S          1,000  00 
253,350  00 
624,710  00 
155,720  00 
10,000  00 
8,. 526  67 
50,400  00 

S      3,800  00 

17,800  00 

184,550  00 

16,104  08 

$         4,800  00 

271 , 150  00 

809,260  00 

171,824  OS 

10,000  00 

8,526  67 

93,900  00 

6,000  00 

38,. 500  00 

4,800  00 

25,220  00 

18,055  00 

2,380  00 

1,350  00 

3,887  89 

600  00 

$          2,000  00 

233,. 330  00 

450,850  00 

109,020  00 

4,800  00 

8,226  67 

41,400  00 

$      4,7.50  00 

1,780  00 

73,800  00 

$          6,750  00 

2.53,130  00 

324,6.50  00 

109,020  00 

4,800  00 

8.226  67 

46,400  00 

$      1,200  00 


S      95,. 350  58 

191,904  59 

10,000  00 

Public  Lands 

7,121  39 

12  321  39 

300  00 

Niagara  reservation 

40,881  00 
20,500  00 

43,500  00 
6,000  00 

8,000  00 

34,881  00 

20,500  00 

3,. 500  00 

600  00 

9,220  00 

7,055  00 

250  00 

1,330  00 

1,430  00 

600  00 

38,500  00 

850  00 

11,220  00 

8,0.55  00 

1,250  00 

1,. 3.50  00 

1 ,650  00 

600  00 

31,000  00 

850  00 

11,220  00 

7,055  00 

250  00 

1,000  00 

1,370  00 

600  00 

31,000  00 

1,800  00 

16,220  00 

7,055  00 

8.80  00 

1,000  00 

1,637  89 

600  00 

27,500  01) 
700  00 
500  00 

500  00 
6,500  00 
5,000  00 
2,050  00 

3,950  00 
14,000  00 
10,000  00 

1,130  00 

950  00 
5,000  00 

5,000  00 

Lake  George  Battle  Ground  park 

630  00 

1,420  00 
350  00 

Sir  William  Johnson  mansion   . 

5,300  00 

2,237  89 

287  89 

5  072  11 

10,000  00 
1,500  00 
1,050  00 

500  00 

13,500  00 
4,250  00 
16,000  00 

10,000  00 

Washington's  headquarters,  Newburgh 

Phillipse  manor  house,  Yonkers 

2,830  00 

2,700  00 

200  00 

5147000 

4,350  00 

2,550  00 

200  00 

s^soo'oo 

9,170  00 

4,350  00 
5,030  00 
3,200  00 

4,350  00 

1,800  00 

200  00 

4,350  00 
2,500  00 
3,200  00 

,    2,500  00 
3,000  00 

""8, .800  00 
17,330  00 
9,000  00 

700  00 
3,000  00 

1,250  00 

3,000  00 

SOO  00 

12,300  00 

26,500  00 

9,000  00 

1,500  00 
7,070  00 

2,300  00 
6,150  00 
7,500  00 

4,000  00 
13,220  00 
7,300  00 

9,500  00 

3,500  00 

8  500  00 

1,048,071  67 

372,337  56 

1,420,409  23 

1,186,951  67 

343,701  97 

1,530,653  64 

9.37,911  67 

112,047  89 

1,049,959  56 

36,400  00 

406,849  67 

Enfiineer  and  Surveyor  -  .  . 

36,990  00 

120,890  00 

1,000  00 

63,950  00 

20,115  00 
7,500  00 
6,249  95 
5,000  00 

67,103  00 

128,390  00 

7,249  95 

68,950  00 

.37,343  00 

173,080  00 

1 ,000  00 

73,. 800  00 

23,300  00 
12,800  00 
10,350  00 

00,845  00 

185,880  00 

11,330  00 

73.800  00 

.37,345  00 

113,910  00 

1,000  00 

.57,950  00 

18,500  00 

55,845  00 

113,910  00 

1,550  00 

57,9.50  00 

1,260  00 

14,4.80  00 
3,699  93 

630  00 

Highway  department 

11  000  (X) 

Total... 

222,830  00 

38,864  93 

261 ,694  95 

285,225  00 

46,850  00 

^32,075  00 

210,205  00 

19,050  00 

229,235  00 

3'  4;?<)  95 

General: 

Banking  department 

214,9.50  00 
416,840  00 

28,153  33 

22,930  00 

1,000  00 

5,376  71 

243,103  33 

439,790  00 

1 ,000  00 

5,376  71 

15,000  00 

225,000  00 

140  00 

221,590  00 
440,780  00 

221,390  00 

440,780  00 

2,500  00 

1,000  00 

15,000  00 

216,090  00 
330,444  70 

216,090  00 

381,584  70 

2,300  00 

1,000  00 

15,000  00 

27  013  33 

31,140  00 
2,500  00 
1,000  00 

78,205  30 

2,500  06 
1,000  00 

1,500  00 

Redemption  of  lands 

4  376  71 

Stationery 

15,000  00 
175,000  00 

15,000  00 

15,000  00 

County  treasurers 

50,000  00 
140  00 

Refund,  Wartin  B.  Hosier 

140  00 

Total 

821,790  00 

107,620  04 

929,410  04 

677,370  00 

3,500  00 

680,870  00 

561,334  70 

34,640  00 

596,174  70 

1,500  00 

334,735  34 

Executive 

Administrative . 

Legislative 

Judicial 

Regulative 

Educational . . . . 
Agricultural. . . . 

Defensive 

Penal 

Curative 

Cliaritable 

Protective 

Constructive . .  . 
General 


SUMMARY 


(RECAPITULATION.) 


Total 27,128,513  63 


65,990  00 

1,102,143  00 

1,077,400  00 

1,739,1,85  00 

2,252,9.32  50 

7,597,774  89 

1,1.37,058  80 

598,0.85  00 

1,303,770  00 

5,981,111  37 

2,180,369  40 

1,048,071  67 

222,830  00  i 

821,790  00 


36, 
122, 
249, 

91, 
218, 
210 
607 
158 

77 
799 
476 
372 

38 
107 


963  90 
912  56 
200  00 
885  66 
937  49 
269  40 
,670  71 
,966  79 
141  66 
,304  60 
,477  01 
,337  56 
,884  95 
,620  04 


3,664,352  22 


102, 
1,225, 
1,326. 
1,830. 
2,489, 
7,808 
1,744 

755 
1,380 
6,780 
2,658 
1,420 

261 

929 


933  90 
057  66 
800  00 
870  58 
869  99 
044  29 
,729  51 
,061  79 
,911  65 
,415  97 
,8^16  41 
,409  23 
,694  95 
,410  04 


30,692,866  85 


67, 

1,164, 

1,077, 

1,743, 

2,679 

8,168: 

1,599 

668 

1,427 

7,212 

2,878 

1,186 

285 

67' 


290  00 
675  00 
400  00 
920  00 
770  90 
010  00 
558  80 
495  00 
,000  00 
.885  00 
,860  00 
,931  07 
,225  00 
,370  00 


30,737,411  37 


.$  25 

119 

155 

53 

2,163 

247 

1,401 

281 

73 

839 

196 

343 

46 

3 


300  00 
600  00 
000  00 
226  07 
435  00 
016  09 
759  38 
599  81 
,400  00 
,194  54 
, 160  00 
701  97 
850  00 
500  00 


5,949,742  86 


92, 

1,284, 

1,232, 

1.797, 

4,743, 

8,413, 

3,001, 

950, 

1,.500 

8,0.52, 

3,075 

1,.530 

332 

080, 


690  00 
275  00 
400  00 
146  07 
205  90 
026  09 
318  18 
094  81 
400  00 
079  64 
020  00 
653  64 
075  00 
870  00 


36,687,154  23 


72 

1,030 

1,077 

1,738 

2,048 

7,678 

1,286 

601 

1,101 

6,608 

2,348 

93' 

210 

561 


460  00 
575  00 
400  00 
320  00 
470  90 
700  (i9 
218  .80 
695  00 
,870  00 
,930  00 
910  00 
,911  67 
,205  00 
,534  70 


27,601,201  76 


.30,074  16 
110,700  00 
135,000  00 

53,226  07 
112,935  00 
204,516  00 
356,772  15 
172,512  48 

.80,250  00 
804,3.50  00 
173,250  00 
112,047  89 

19,030  00 

34,640  00 


2,419,523  75 


$      102,534  16 

1,141,273  00 

1, -232, 400  00 

1,791,548  07 

2,181,403  90 

7,883,216  69 

1,842,990  95 

774,207  48 

1,182.120  00 

7,211,+SO  00 

2,722.160  00 

1,049,9.59  50 

229,233  00 

596,174  70 


29,920,725  51 


$  115,008  80 

221,200  00 

21,761  98 

20,500  00 

589,757  09 

171,403  33 

36,400  00 

'    lisoooo 


1,177,531  -20 


!         419  74 

83,782  56 

94.200  00 

39,324  49 

308,484  09 

39,836  40 

1-22,938  56 

2.606  '29 

219. -291  63 

158,693  06 

106,089  74 

406. S49  67 

32.439  95 

334.735  34 


1,949,671  54 


131 


SCHEDULE  OF  APPROPRIATIONS  FOR  THE  YEAR   1913 


DEPARTMEXTS 


Appropriation  Made  by  the  Legislature 
OF  1912 


Executive,  total. 


Administrative: 

gpcrctarj'  of  State 

Comptroller 

Treasurer 

Attorney-General 

Civil  Service  Commisaion . 
Printing  Board . 


Tutal. 


Legislatl\e,  total 
Judicial,  total .  .  . 


Regulative: 

Excise  Department 

Health  Department 

Labor  Department 

Public  Service  Commission 

Health  omrer.  Port  of  New  York 

Department  of  Public  Works 

Superintendents  of  Elections 

Tax  Commissioners 

WeifthtB  and  Measures  Department 

Atliletiit  Commission 

Institute  for  the  Study  of  Malignant  Diseases. , 
Buiird  of  Examiners  of  Feeble-minded  Crim- 
inals and  Other  Defectives 

Board  of  Port.  Wardens 

Commission  to  Investigate  Port  Conditions.  .  . 

Interstate  Bridge  Commission 

Pacing  Commission 


Total., 


Educational: 

Education  department 

Alfred  University,  School  of  Ceramics. 

Blind,  deaf  and  dumb 

Education  building 

Normal  schools 


Total. . 


Agricultural: 

Agricultural  department 

Agricultural  experimental  station 

Alfred  University,  School  of  Agriculture 

Cornel!  University 

Morrisville  School  of  Agriculture 

St.  Lawrence  llniversity,  School  of  Agriculture, 

Schoharie  School  of  Agriculture 

Syracuse  University,  College  of  Forestry 

State  fair  coumiission 

Advisory  board  for  promotion  of   agricultural 
education 


Total, 


Defensive: 

National  guard 

Naval  mihtia '[ 

Arsenals  and  armories , 

Grand  Army  of  the  Republic,  Depar't  of  X.  Y 


Total. 


Ui 


General 

Appropriation 

Bill 


Supply 
Bill 


S        65,990  00 


323,400  00 

426,075  00 

33,900  00 

248,210  00 

59,060  00 

13,500  00 


1,102,145  00 


1,077,400  00 


1,739,185  00 


370,505  00 
182,420  00 
380,140  00 
479,827  50 
245-,  740  00 
8,000  00 
349,900  00 
138,400  00 

26,200  00 
7,300  00 

60,000  00 


4,500  00 


2,252,932  50 


6,870,940  GO 

13,350  00 

191,984  89 


521,. 500  00 


7,597,774  i 


479,000  00 
120,300  00 
34,750  00 
349,428  SO 
34,880  00 
35,000  00 


50,000  00 
33,700  00 


1,137,058  80 


556,585  00 
41,500  00 


698,085  00 


$  36,963  90 


2,508  30 
44,550  00 

4,000  00 
69,254  26 

2,600  00 


122,912  56 


249,200  00 


91,685  56 


27,500  00 

16,090  49 

4,425  00 

8,000  00 

90,250  00 


2,000  00 
15,500  00 
4,000  00 
2,750  00 
30,400  00 


8,000  00 
2^02200 


216,937  49 


74,581  40 
25,800  00 
30,888  00 
8,000  00 
71 ,000  00 


210,269  40 


273,323  61 
9,000  00 
13,800  00 

141,000  00 
37,547  10 
20,000  00 


112,000  00 
1,000  00 


$      102,953  90 


325,908  30 

470,625  00 

37,900  00 

315,464  26 

61,660  00 

13,500  00 


1,225,057  56 


1,326,600  00 


1,830,870  56 


398,005  00 

198,510  49 

384,505  00 

487,827  50 

335,990  00 

8,000  00 

•351 ,900  00 

153,900  00 

30,200  00 

10,050  00 

96,400  00 


4,500  00 
8,000  00 

2^022  00 


■2,469,869  99 


6,945,521  40 

39,150  00 

222,872  89 

8,000  00 

592,500  00 


;,044  29 


607,670  71 


18,860  50 

13,000  00 

122,606  29 

2,500  00 


156,966  79 


752,323  61 
129,300  00 
48,550  00 
490,428  SO 
72,427  10 
55,000  00 

"  50 i 000  00 
145,700  00 

1,000  00 


1,744,729  51 


575,445  50 

64,500  00 

122,605  29 

2,500  00 


755,051  79 


Appropriation  Desired  of  the  Legislature 
OF  1913 


Amounts  Recommended  bt  Committee 


General 
Appropriation 


Supply 
BUI 


$    67,290  00     $    25,300  00 


336,400  00 

477,425  00 

35,900  00  ! 

239,990  00 

61,460  00 

13,500  00 


2,500  00 

51,600  00 

500  00 

65,000  00 


1,104,675  00 


119,600  00 


1,077,400  00 


155,000  00 


1,743,920  00 


53,226  07 


431,555  00  27,000  00 

204,500  00  32,000  00 

420,480  00  ;  

493,295  90  '■  2,000,000  00 

311,780  00  i  50,000  00 

8.000  00      

3.54,900  00  I   

193,400  00  j  27,160  GO 

36. .320  00  I   

5,180  00  2,000  GO 

60,000  00  1  25,275  00 

22,500  00  !   

10,000  00  '   

"27i866'66  i  '.'.'.'.'.'.'.'.'.'.'.\ 


2,579,770  90  I  2,163,435  00 


7,190,390  00 

16,400  00 

389,740  00 

'"571^48006 


69,205  00 

'  39,'8il  09 
30,000  00 
108,000  00 


3,168,010  00 


247,016  09 


537,140  GO 

1.39,500  GO 
35,000  00 

629,428  80 
36,030  GO 
35,000  00 
50,000  00 

103,260  00 
34,200  GO 


1,599  5.38  80 


611, -945  00 
56,550  00 


536,000  00 

'36^000 '66 

291,000  GO 

96,800  00 

9,. 8.59  38 

26,000  00 

281,000  00 

124,500  00 


1,401.759  38 


128, .599  81 

30,000  00 

120,000  00 

3,000  00 


JTotal 


92,590  GO 


338,900  00 

529,025  00 

36,400  00 

304,990  00 

61,460  00 

13,500  00 


1,284,275  GO 


1,232,400  00 


1,797,146  07 


458,5.55  GO 

236,500  00 

420,480  00 

2,493,295  90 

361,7.80  GO 

8,000  00 

354,900  00 

220,560  GO 

36,320  00 

7,180  00 

85,275  00 

22,500  00 
10,000  00 

'27iS66'66 


4,743,205  90 


7,259,595  00 

16,400  00 

429,  .551  09 

30,000  00 

679,480  00 


8,415,026  00 


1,073  140  00 

139,500  00 

71,000  00 

920,428  80 

1.32,. 8.30  00 

44,859  38 

76,000  00 

384,260  00 

158,700  GO 


3,001,318  18 


740,544  81 

86,. 550  00 

120,000  00 

3,000  00 


668,495  00 


281,599  81 


950,094  81 


General 

Appropriation 

Bill 


$        72,460  GO 


.282,700  00 

415,825  00 

32,400  00 

229,990  00 

56,160  00 

13,500  00 


1,030,575  00 


1,077,400  00 


1,738,320  00 


288,355  GO 
150,800  GO 
371,840  00 
479,985  90 
239,6,80  GO 
1,000  00 
292,900  00 
144,, S80  00 

14,050  00 
5,000  Of  I 

60,000  00 


2,048,470  90 


6,845,780  00 

13,350  00 

279,570  69 

"'546io6o'66 


7,678,700  69 


429,560  GO 
120,. 500  00 
35,000  00 
549,428  80 
36,030  00 
35,000  00 

"iioiooo'oo 

30,700  00 


1,286,218  SO 


557,845  00 
43,850  GO 


601,695  00 


SuppI}' 
Bill 


S    30,074  16 


1 ,000  GO 
45,700  00 

4,000  00 
60,000  00 


110,700  00 


155,000  00 


53,226  07 


20,000  00 
9,500  00 


50,000  00 

"8ii66'66 

25^275  66 


112,935  00 


85,705  GO 

'39[8ii'66 
15,000  00 
64,000  00 


204,516  00 


302,000  00 
18,000  00 


155,000  00 
3,700  00 
6,072  15 

74,000  GO 

556,772  15 


32,012  48 

18,000  00 

120,000  00 

2,500  00 


Total 


S      102,534  16 


283,700  00 

461 ,525  00 

36,400  00 

289,990  GO 

56,100  00 

13,500  00 


1,141,275  00 


1,232,400  GO 


1,791,546  07 


308,355  GO 
160,300  00 
371,840  00 
479,905  90 
289,680  00 
1,000  GO 
292,900  GO 
153,040  00 

14,0.50  GO 
5,000  GO 

85,275  00 


2,161,405  90 


6,931,485  00 
13,. 350  00 

319,381  69 
15,000  00 

604,000  00 


7,883,216  69 


731,560  00 
136,. 500  GO 
35,000  00 
704,428  80 
39,730  00 
41,072  15 

"56^06006 
104,700  00 


1,842,990  95 


172,512  48 


589,857  48 

61,850  00 

120,000  00 

2,500  00 


74,207  48 


As  Compared  with  1912 
.\ppropriatio-v 


Recommended 


Incre.a3e 


90,508  80 
7,000  00 
11,500  00 


115,008  SO 


7,200  00 
'214^660  06 


221,200  GO 


14,411  98 
7,. 350  00 


21,761  98 


Decrease 


$419  74 


42,208  30 
9,100  GO 
1,500  GO 

25,474  26 
5,500  GO 


83,782  56 


94,200  00 


39,324  49 


89,6.50  00 
38,210  49 
12,725  GO 

7,861  60 
46,310  00 

7,000  00 

59,000  GO 

860  00 

16,150  00 

5,050  00 
11,125  00 


4,500  00 
8,000  00 

'2i622  06 


308,464  09 


14,036  40 
25,800  00 


39,836  40 


20,763  61 

isissoTO 

'32i697'i6 
13,927  85 

'4i;666'66 

1,000  00 


122,938  56 


2,606  29 


17 


STATEMENT   OF   APPROPRIATIONS   RECOMMENDED 
BY  COMMITTEE  OF  INQUIRY. 

Total  amount  asked  for  hi  budget,  1913 $03,817,123  04 

Amount  recommended  by  Committee 41,110,334  51 


Reduction  of  estimates  recommended  by 

Committee '.        $22,706,789  43 


Total  appropriations,  1912 $52,366,582  35 

Total   appropriations   recommended  by   Com- 
mittee, 1913 41,110,334  51 


Total  savings  in  appropriations  as  com- 
pared with  1912 $11,256,247  84 


Appropriations:  1912.                        1913. 

Appropriation  Bill $27,128,513  63       $27,501,201  76 

Supply   Bill 3,564,352  22            2,419,523  75 

Special  Bill 13,579,171  01  Est.  10,000,000  00 


$44,272,036  86       $39,920,725  51 
Contributions  payable  to  canal 

fund    ". 1,286.562  00  1,060,109  00 


$45,558,598  86       $40,980,834  51 

Canal  debt  sinking  fund $4,442,263  33 

Highway  debt  sinking  fund.        2,077,832  84 


Palisade      Interstate      Park 


sinking  fund 137,787  32 

Saratoga  Springs  State  Res- 
ervation fund 150,100  00  129,500  00 


Totals $52,366,582  35       $41,110,334  51 


The  Appropriation  and  Supply  Bill  items  recommended  by  the 
Committee  show  a  reduction  in  eighty  departments,  bureaus  and 
offices,  compared  with  the  1912  appropriations  of  $1,949,671.54. 
On  account  of  the  increase  in  the  number  of  inmates  in  the  hos- 
pitals and  charitable  institutions,  arbitrary  increases  in  wages,  due 

2 


16 


'1 
i 


17 


STATEMENT   OF  APPROPRIATIONS   RECOMMENDED 
BY  COMMITTEE  OF  INQUIRY. 

Total  amount  asked  for  in  budget,  1913 $63,817,123   04 

Amount  recomniended  by  Committee 41,110,334  51 


Reduction  of  estimates  recommended  bv 

Committee '.        $22,706,789  43 


Total  appropriations,  1912 $52,366,582  35 

Total   appropriations   recommended   by   Com- 
mittee, 1913 41,110,334  51 


Total  savings  in  appropriations  as  com- 
pared with  1912 $11,256,247  84 


Appropriations:  1912.                       1913. 

Appropriation  Bill $27,128,513  63       $27,501,201  76 

Supply   Bill 3,564,352  22            2,419,523  75 

Special  Bill 13,579,171  01  Est.  10,000,000  00 


$44,272,036  86       $39,920,725  51 
Contributions  payable  to  canal 

fund    [ 1,286.562  00  1,060,109  00 


$45,558,598  86       $40,980,834  51 

Canal  debt  sinking  fund $4,442,263  33 

Highway  debt  sinking  fund.  2,077,832  84 

Palisade      Interstate      Park 

sinking  fund 137,787  32 

Saratoga  Springs  State  Res- 
ervation fund 150,100  00               129,500  00 


Totals $52,366,582  35       $41,110,334  51 


The  Appropriation  and  Supply  Bill  items  recommended  by  the 
Committee  show  a  reduction  in  eighty  departments,  bureaus  and 
offices,  compared  with  the  1912  appropriations  of  $1,949,671.54. 
On  account  of  the  increase  in  the  number  of  inmates  in  the  hos- 
pitals and  charitable  institutions,  arbitrary  increases  in  wages,  due 

2 


18 

to  legislation  of  1912,  and  deficienci&s  incurred  in  1912,  the  ex- 
penses of  these  hospitals  and  charitable  institutions  have  increased 
$7G1,1G0.42.  Various  other  departments  and  institutions,  includ- 
ing Agriculture,  Agricultural  Schools,  Care  of  the  Blind,  Deaf 
and  Dumb,  jSTational  Guard  deficiency,  Educational  Building  and 
Normal  Schools  show  a  further  increase  this  year  of  $410,370.78, 
making  the  total  increase  in  these  institutions  and  departments 
over  the  appropriations  of  1912  of  $1,177,531.20.  The  net  reduc- 
tion, therefore,  in  the  recommended  appropriations  for  1913,  as 
compared  with  the  actual  appropriations  of  1912  in  the  Appro- 
priation and  Supply  Bill,  amount  to  $772,140.34. 


19 


DEPARTMENTS,  COMMISSIONS  AND  BUREAUS 

OF  THE  STATE. 

The  figures  in  relation  to  each  of  the  Departments  and  Bureaus 
of  the  State  will  be  handled  so  far  as  their  receipts  and  expendi- 
tures of  moneys  are  concerned  along  the  following  general  lines: 

The  appropriations  for  these  Departments  in  the  year  1912; 
the  amounts  asked  for  in  1913;  and  the  amounts  recommended  by 
the  Committee. 

We  had  intended  to  go  back  to  the  year  1905  as  a  basis  for 
comparison,  but  after  beginning  our  work  we  found  that  there 
have  been  so  many  changes,  caused  by  the  organization  of  new  de- 
partments, the  taking  of  work  from  one  department  and  placing  it 
upon  another,  and  the  increased  duties  devolving  upon  each  de- 
partment, that  such  a  comparison  would  be  misleading  and  of  no 
value  whatever. 

EXECUTIVE    DEPARTMENT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $65,990 .  00 

Supply  bill 36,963 .  90 

Total $102,953 .  90 


Amount  asked  for  in  1913: 

Appropriation  bill   $67,290 .  00 

Supply  bill 25,300.00 

Total $92,590 .  00 


After  Your  Excellency  took  office  it  became  apparent  that  it 
was  necessary,  in  order  to  properly  audit  the  enoinnous  amounts 
expended  for  repairs  upon  the  State  Capitol  (the  vouchers  for 
which  you  are  required  to  sign),  that  an  Executive  Auditor  should 
be  appointed  who  would  relieve  you  of  the  necessity  of  examining 
into  the  vouchers  submitted  for  your  signature,  as  one  of  the 
members  of  the  Board  of  Trustees  of  Public  Buildings.  Prac- 
tically all  the  work  upon  the  Capitol  is  done  under  percentage 
contracts,  which  require  car'^ful  inspection  of  the  pay-rolls  and 


20 

the  bills  for  materials  used,  and  these  items  run  into  very  large 
figures.  It  was  of  course  impossible  for  you  to  even  superficially 
examine  those  detailed  figures,  and  yet  your  approval  of  these 
bills  was  required  ofiicially  before  they  could  be  paid  by  the  Comp- 
troller. We  therefore  recommended,  and  you  appointed,  an 
E.xecutive  Auditor,  which  created  a  new  official,  but  one  absolutely 
necessary  to  make  certain  that  the  taxpayers  be  protected  against 
excessive  expenditure  of  the  public  funds. 

Outside  of  the  question  of  an  official  auditor,  the  duties  of 
employees  in  the  office  of  the  Governor  have  been  rearranged  so 
that  the  cost  to  the  State  of  conducting  your  Department  for  the 
coming  year  in  the  Appropriation  and  Supply  bill  will  not  ex- 
ceed the  sum  of  $95,534.10,  which  is  a  saving  of  $7,4:19.74  over 
the  amount  appropriated  in  1912. 

SECRETARY  OF  STATE. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill    $323,400.00 

Supply  bill 2,508 .  30 

Total $325,908 .  30 

Amount  asked  for  in  1913: 

Appropriation  bill $336,400.00 

Supply  bill 2,500 .  00 

Total $338,900 .  00 


The  collection  of  the  motor  vehicle  tax,  which  is  imposed  by 
law  upon  the  office  of  the  Secretary  of  State,  has  necessarily  re- 
sulted in  a  large  increase  in  the  office  force  and  expense  con- 
nected with  the  administration  of  this  office. 

The  Appropriation  bill  in  1912  contained  items  amounting  to 
$214,400.00  in  connection  with  the  Motor  Vehicle  Bureau,  but 
this  included  items  for  number  plates,  $42,000 ;  chauff"eurs' 
badges,  $5,000 ;  and  refunds,  $500 ;  a  total  for  these  items  of 
$47^500. 

The  total  amount  collected  by  this  Department  in  the  year  1912 
from  the  motor  vehicle  tax  was  $1,053,762.25,  which  netted  the 
State,  less  expenses  in  collecting  the  same,  $854,374.11. 


21 

Upon  its  face  this  seems  to  be  a  very  large  amount  for  the  col- 
lection of  this  tax.  A  number  of  suggestions  have  been  made  that 
the  tax  should  be  collected  in  the  future  in  somewhat  different 
manner,  so  that  the  expense  of  collection  be  reduced,  and  also  that 
the  owners  of  motor  vehicles  may  pay  the  tax  in  their  home  locali- 
ties to  avoid  delay  and  inconvenience. 

Your  Committee  is  of  the  opinion  that  this  tax  should  be  col- 
lected either  through  the  Highway  Department,  to  whom  the  rev- 
enues accrue  for  the  maintenance  of  roads,  or,  if  it  is  still  to  be 
collected  by  the  Secretary  of  State,  that  the  collections  in  the  in- 
terior of  the  State  should  be  made  through  the  county  clerks  of 
the  different  counties.  The  payment  of  a  small  percentage  of  the 
tax,  not  to  exceed  two  per  cent.,  to  the  county  clerks,  would  recom- 
pense them,  and  ought  to  reduce  the  number  of  employees  now 
maintained  at  headquarters. 

We  are  of  the  opinion,  however,  that  the  proper  and  best  method 
of  collecting  the  automobile  tax  would  be  through  the  Highway 
Department.  The  new  highway  law  creates  nine  divisions  out- 
side of  the  city  of  ]^ew  York  (where  a  separate  bureau  would 
probably  have  to  be  maintained),  and  the  automobile  tax  could 
be  collected  through  the  different  division  engineer  headquarters 
of  the  Highway  Department. 

We  believe  that  if  this  work  of  collecting  the  automobile  tax 
is  conferred  upon  the  Highway  Department,  it  will  place  that  de- 
j)artment  in  closer  touch  with  the  owners  of  automobiles,  and  that, 
in  a  sense,  the  entire  highway  force  will  be  interested  in  col- 
lecting the  largest  revenues  possible,  to  the  end  that  sufficient  funds 
may  be  provided  for  proper  maintenance  of  the  roads.  In  addi- 
tion, the  large  force  of  inspectors  and  men  at  work  upon  all  the 
different  roads  of  the  State  can  be  made  an  effective  agency  to 
enforce  the  license  law,  and  to  protect  the  roads  and  the  travel- 
ers thereon  by  insisting  upon  the  rigid  observance  of  all  law^s 
relating  to  the  operation  of  motor  vehicles. 

The  Secretary  of  State  has  special  bills  pending  which  pro- 
vide for  an  appropriation  of  $90,000,  to  pay  inspectors.  We  be- 
lieve that  the  work  can  be  done  by  the  Department  of  Highways 
without  much  additional  expense,  and  with  much  more  efficiency 
than  any  proposed  system  that  can  be  established  under  the 
Secretary  of  State.  'We  believe  that  the  sum  of  $283,700.00 
is  sufficient  to  run  this  department  for  the  next  fiscal  year,  which 
is  a  saving  of  $42,208.30  over  the  amount  appropriated  in  1912, 


22 


COMPTROLLER. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill    $426,075  .  00 

Supply  bill 44,550 .  00 

Total    $470,625 .  00 

Amount  asked  for  in  1913: 

Appropriation  bill $477,425.00 

Supply  bill 51,600 .  00 

Total    $529,025.00 


The  Legislature  each  year  has  placed  a  large  volume  of  addi- 
tional work  upon  the  Comptroller's  office,  and  in  the  year  1912  it 
imposed  the  additional  duty  of  examining  the  accounts  of  all  the 
town  and  village  officials  in  the  State,  in  addition  to  what  was 
formerly  required  in  the  examination  of  the  coimties  and  cities. 

The  Legislature  has  also  discontinued  the  office  of  the  commis- 
sioners for  loaning  the  moneys  of  the  State  and  centered  all  of 
this  work  in  the  Comptroller's  office.  In  addition,  the  work  in  the 
office  in  connection  with  the  Corporation  Tax  Bureau,  court  and 
trust  funds,  and  transfer  tax,  is  gradually  increasing,  and  we  have 
proposed  legislation  this  year  requiring  the  Comptroller  to  audit 
all  the  accounts  paid  out  of  State  funds.  Under  the  present  law 
the  Comptroller's  power  of  audit  is  limited  to  less  than  one- 
fourth  of  the  expenditures  of  the  State  departments,  and  it  should 
be  extended  to  cover  all  funds.  In  view  of  the  fact  that  this 
increased  work  has  heen  put  upon  this  office,  and  the  increased 
work  which  it  is  fair  to  anticipate  will  be  placed  upon  it,  we  be- 
lieve that  the  Comptroller's  estimates  for  this  year  are  as  small  as 
can  be  expected,  and  that  the  sum  of  $522,325.00  should  be  al- 
lowed therefor,  an  increase  of  $51,700  over  1912. 


23 


STATE  TREASURER. 

The  appropriations  for  the  year  1912  were: 

Ai^propriatioii  bill   $33,900.00 

Supply  bill 4,000 .  00 

Total    $37,900 .  00 


Amount  asked  for  in  1913: 

Appropriation  bill $35,900 .  00 

Supply  bill 500 .  00 

Total   .  . ; $3G,400 .  00 


With  the  natural  increase  of  the  work,  and  the  fact  that  this 
Department  shows  a  decrease  in  expenditures  of  $1,500,  com- 
pared with  1912,  we  believe  that  it  is  being  conducted  as  efficient- 
ly and  as  economically  as  possible. 

ATTORNEY-GENERAL. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $246,210.00 

Supply  bill 69,254.26 

Total   $315,464.26 


Amount  asked  for  in  1913: 

Appropriation  bill   $239,990.00 

Supply  bill 65,000.00 

Total    $304,990 .  00 


We  have  carefully  examined  these  figures  and  believe  that 
the  sum  of  $289,990  will  be  sufficient  to  maintain  this  Depart- 
ment for  the  coming  year,  a  saving  over  the  year  1912  of  $25,- 
474.26. 

The  work  of  the  Attorney-General's  office  has  increased  very 
maierially  during  the  term  of  the  present  incumbent,  due  to  the 
fact  that  tlie  office  has  taken  over  a  larger  amount  of  work  for 


24 

wliifli  special  counsel  was  funiit'rly  einpluycd,  and  to  additional 
duties  connected  with  the  investigation  of  titles.  It  is  our  opin- 
ion that  this  Department  is  now  being  administered  at  the  least 
possible  cost.  The  wisdom  of  the  policy  of  dispensing  with  the 
services  of  special  counsel  has  been  demonstrated  by  a  large  sav- 
ing of  unnecessary  expenditures,  combined  with  much  greater 
efficiency  in  the  transaction  of  the  legal  business  of  the  State. 

EXCISE  DEPARTMENT. 
The  appropriations  for  the  year  1912  were: 

Appropriation  bill   $370,505  .00 

Supply  bill   27,500 .  00 

Total   $398,005 .  00 

Amount  asked  for  in  1913: 

Appropriation  bill   $431,555.00 

Supply  bill 27,000 .  00 

Total   $458,555 .  00 

Increase  asked  over  1912 $00,550.00 


This  increase  was  for  $40,000  additional  for  special  agents  and 
$20,000  additional  for  legal  expenses.  This  Department  had  a 
large  amount  of  unexpended  balances  on  hand,  and  we  were  of 
the  opinion  that  the  additional  excise  inspectors  and  the  additional 
legal  expenses  should  not  be  allowed.  Taking  into  consideration 
the  unexpended  balances,  if  this  Department  is  allowed  $308,- 
355  it  w'ill  have  funds  sufficient  to  run  the  department  econom- 
ically and  efficiently  during  the  fiscal  year  of  1913-14,  a  decrease 
over  1912  of  $89,650. 

In  1912  the  cost  of  this  Department  for  legal  expenses  was 
$73,585.78,  and  the  amount  asked  for  tins  year  is  $90,000.  This 
Department  is  now  the  only  one  in  the  State  which  has  a  numerous 
legal  staff.  Work  of  similar  character  in  the  Agricultural  De- 
partment and  the  Conservation  Department  is  carried  on  by  the 
Attorney-General,  and  that  official  is  of  the  opinion  that  he  could 
effect  a  large  saving  if  this  work  were  assigned  to  his  office. 


25 


PUBLIC  SERVICE  COMMISSIONS. 
First  District. 

Under  the  statute  the  onlj  expense  to  the  State  in  connection 
with  the  First  District  Pnblic  Service  Commission,  is  for  the 
salaries  of  the  commissioners,  their  secretary  and  legal  counsel, 
amounting  in  all  to  $91,000,  the  balance  of  the  cost  being  paid 
bj  the  city  of  New  York.  The  salary  list,  of  course,  is  fixed  by 
statute. 

Second  District. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $388,827 .  50 

Supply  bill 8,000 .  00 

Total    $396,827 .  50 

Amount  asked  for  in  1913: 

Appropriation  bill $402,295.90 

Supply  bill 

Total    $402,295 .  90 


We  have  carefully  gone  over  these  figures  and  in  our  opinion 
the  sum  of  $388,965.90,  a  saving  over  1912  of  $7,861.60,  is  suffi- 
cient to  carry  on  this  Department  for  the  ensuing  fiscal  year. 

Each  of  these  Departments  asks  for  a  very  large  amount  of 
money  for  the  elimination  of  grade  crossings,  the  demand  of  the 
First  Department  being  $1,500,000,  and  the  Second  Department, 
$500,000,  a  total  of  $2,000,000.  The  cost  to  the  State  of  elimi- 
nating grade  crossings  is  very  large,  and  the  State  can  properly 
make  almost  any  aj)propriation  within  reason,  as  the  grade  cross- 
ing eliminations  under  the  present  law  practically  await  State  aid 
before  they  are  undertaken.  The  State  will  soon  have  to  face  the 
proposition  of  having  some  uniformity  in  regard  to  its  method  of 
handling  the  elimination  of  grade  crossings.  In  the  past,  legis- 
latures have  made  appropriations  of  different  amounts,  and  in  a 
number  of  years  have  made  no  appropriations  whatever,  and  in- 
stead of  the  number  of  grade  crossings  being  lessened,  they  are 
necessarily,  on  account  of  the  construction  of  new  roads,  inereas- 
2 


2G 

ing  ill  miinlxT.  The  entire  Grade  Crossing  Law  should  be  re- 
vised and  rewritten,  and  some  provision  should  be  made  requiring 
the  railroads,  at  their  own  expense,  to  eliminate  a  certain  numl^er 
of  grade  crossings  each  year.  This  has  been  done  in  other  states, 
particularly  in  Connecticut,  Vermont,  and  in  a  number  of  the 
western  states,  and  similar  legislation  should  be  enacted  here.  Tn 
view  of  the  condition  of  the  State's  finances  we  recommend  the 
sum  of  $300,000  only  be  allowed  each  district,  and  that  a  special 
bill  be  enacted  providing  that  sum. 

HEALTH  OFFICER  OF  THE  PORT  OF  NEW  YORK. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill   $245,740.00 

Supply  bill 90,250 .  00 

Total $335,990 .  00 


Amount  asked  for  in  1913: 

Appropriation  bill   $311,780.00 

Supply  bill 50,000 .  00 

Special  bills    1,953,000.00 

Total    $2,314,780 .  00 


The  health  officer  of  the  Port  of  New  York  testified  before  our 
Committee  that  the  buildings  now  owned  by  the  State  of  New 
York  on  Swinburne  and  Ilolfman  islands,  in  New  York  harbor, 
were  in  need  of  very  extensive  repairs,  that  new  buildings  are 
needed  and  that  it  would  cost  approximately  $2,000,000  to  put 
this  quarantine  station  in  proper  condition.  He  also  asked  for  a 
large  increase  in  his  maintenance  items. 

We  are  of  the  opinion  that  no  moneys  whatever  should  be  ex- 
pended this  year  for  new  buildings,  aiid  therefore  that  all  the 
items  in  the  special  bill  should  be  disallowed. 

We  are  also  of  the  opinion  that  the  sum  of  $289,680  will  be 
sufficient  for  the  maintenance  of  this  Department  during  the  next 
fiscal  year,  a  decrease  over  1912  of  $40,310.  Upon  the  hearing 
the  health  officer  further  testified  that  in  his  opinion  the  fees 
charged  for  inspections  and  fumigation  of  incoming  vessels  are 
too  small,  and,  at  our  request,  he  submitted  to  us  a  schedule  of 
higher  fees  which  he  estimated  would  result  in  increasing  the 


27 

revenues  from  $105,789.73  to  $205,509.46.  We  have  heretofore 
approved  these  recommendations  for  increased  charges,  and  have 
prepared  and  submitted  to  the  Legiskiture  a  bill  authorizing  this 
change. 

CIVIL  SERVICE  COMMISSION. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $59,060 .  00 

Supply  bill 2,600.00 

Total $61,660  00 


Amount  asked  for  in  1913: 
Appropriation  bill $61,460.00 


An  increase  of  one  new  employee  at  a  salary  of  $2,400  was 
asked  for  by  the  State  Civil  Service  Commission,  but  we  do  not 
believe  that  this  employee  is  necessary  at  the  present  time.  In 
our  opinion  the  sum  of  $56,160  is  sufficient  to  maintain  this  De- 
partment, which  is  $5,500  less  than  the  appropriation  of  1912. 

COMMISSION  ON  UNIFORM  STATE  LAWS. 

The  appropriation  for  this  Department  in  the  year  1912  was 
$2,500  and  the  amount  asked  for  this  year  is  $5,000.  We  do  not 
know  of  any  reason  why  this  appropriation-  should  be  increased, 
and  recommend  that  there  be  allowed  only  the  sum  of  $2,500. 

HEALTH  DEPARTMENT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $182,420 .  00 

Supply  bill 16,090.49 

Total    $198,510 .49 

Amount  asked  for  in  1913 : 

Appropriation  bill $204,500.00 

Supply  bill 32,000.00 

Total $236,500.00 


We  recommend  that  the  amount  of  $160,300  be  allowed,  a  de- 
crease from  the  1912  appropriation  of  $38,210.49. 


28 


LABOR  DEPARTMENT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $380,140 . 00 

Supply  bill 4,425.00 

Special  bill 2,850 .  00 

Total $387,415.00 


On  account  of  the  new  legislation  reorganizing  this  Department 
which  has  been  introduced  and  undoubtedly  will  become  law,  a 
great  amount  of  additional  work  will  be  committed  to  the  depart- 
ment and  this  will  require  a  reorganization  of  its  force.  We 
would  recommend  that  a  sufficient  amount  of  money,  outside  of 
the  salaries  named  in  the  bill,  be  allowed  this  year  in  the  supply 
bill,  instead  of  putting  the  same  in  the  different  graded  lists,  so 
that  the  Department  will  have  a  right  to  reorganize  itself  upon  a 
proper  basis,  and  in  next  year's  appropriation  bill  the  items  can 
be  intelligently  classified.  The  amounts  recommended  by  us  this 
year  are  $371,840,  a  decrease  of  $15,575  over  1912. 

DEPARTMENT  OF  PUBLIC  WORKS. 
Steam  Vessels  Inspection. 

Under  the  provisions  of  the  Navigation  Law  there  are  now  ap- 
pointed two  inspectors  of  steam  vessels  at  a  salary  of  $3,000  each, 
together  with  $1,000  each  for  traveling  expenses,  making  a  total 
appropriation  of  $8,000. 

While  there  are  several  vessels  upon  the  inland  waters  of  the 
State  that  are  not  inspected  by  the  Federal  Grovernment,  which 
probably  require  inspection  by  State  officials,  yet  the  number  of 
these  vessels  is  so  small  that  the  work  could  be  done  by  one  person, 
and  he  should  be  paid  out  of  the  fees  collected  by  him.  Our 
recommendation  is  that  the  number  of  inspectors  be  reduced  to 
one;  that  the  items  in  the  appropriation  bill  be  cut  out,  and  that 
the  law  be  amended  so  as  to  provide  that  the  inspector  shall  have 
right  to  retain  fees  to  the  amount  of  $4,000,  of  which  amount 
$3,000  shall  be  for  salary,  $1,000  for  necessary  expenses,  and  the 
balance  of  said  money  shall  be  turned  over  by  him  to  the  Comp- 
troller of  the  State.  This  will  result  in  a  saving  of  $8,000  over 
the  appropriation  of  1912. 


29 


SUPERINTENDENT  OF  ELECTIONS. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $349,900.00 

Supply  bill 2,000.00 

Total    $351,900.00 


Amount  asked  for  in  1913: 
Appropriation  bill $354,900.00 


There  was  a  large  amount  of  unexpended  balances  in  the  funds 
of  this  Department  at  the  close  of  the  last  year,  and  we  are  of  the 
opinion  that  the  sum  of  $292,900  will  be  sufficient  to  economically 
and  efficiently  run  the  Department  for  the  next  fiscal  year.  This 
is  a  decrease  from  the  1912  appropriations  of  $59,000. 

The  law  under  which  this  Department  is  working  is  practically 
new.  For  many  years  each  Legislature  vied  with  its  predecessor 
in  inventing  new  restrictions  upon  the  right  to  vote  in  the  city  of 
JSTew  York.  The  Legislature  of  1910  enacted  a  uniform  elec- 
tion law  which  extended  most  of  these  restrictions  to  the  up-State 
districts.  It  has  been  disclosed  in  our  examination  that  there  is 
considerable  opposition  to  the  restrictive  provisions  of  the  present 
election  law,  and  also  to  certain  expenses  for  printing  and  adver- 
tising which  it  puts  upon  localities.  While  we  believe  firmly  that 
all  provisions  and  requirements  of  the  election  law  ought  to  be 
uniform  throughout  the  State,  we  hold  that  it  is  better  public 
policy  to  repeal  the  unreasonable  restrictions  placed  upon  the 
voters  of  the  city  of  ISTew  York  than  to  extend  these  restrictions  to 
other  voters. 

There  are  now  pending  in  the  Legislature  certain  amendments 
to  the  election  law,  reducing  the  cost  to  up-State  counties,  which 
we  thoroughly  approve,  and  the  passage  of  which  we  recommend. 


30 


TAX  COMMISSIONERS. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill    $138,400.00 

Supply  bill   15,500.00 

Total  $153,900.00 


Amount  asked  for  in  1913: 

Appropriation  bill    $193,400.00 

Supply  bill 27,160 .  00 

Total   $220,500 .  00 


The  work  of  this  Department  has  been  increasing.  We  have 
gone  carefully  over  the  figures  of  the  Tax  Commissioners  and  we 
believe  it  is  necessary  to  allow  this  Department  this  year  the  sum 
of  $223,240,  being  an  increase  over  the  year  1912  of  $G9,340. 

There  were  twenty-three  amendments  to  the  Tax  Law  passed  in 
1911,  most  of  which  became  operative  in  1912,  imposing  addi- 
tional duties  upon  the  Board.  Three  of  these  provide  for  estab- 
lishing tax  maps  in  926  towns;  collecting  and  revising  tables  of 
percentage  from  all  boards  of  supervisors;  and  equalizing  special 
franchise  valuations.  Besides  these  new  duties,  the  Board  has 
general  supervision  over  local  assessing  officers ;  is  a  board  of  re- 
view in  county  equalization  matters ;  is  charged  with  the  enforce- 
ment of  the  ^lortgage  Tax  Law;  and  is  required  to  furnish  blanks, 
advice  and  instruction  to  the  assessing  officers  in  49  cities,  455 
villages  and  926  towns. 

The  duty  of  equalizing  special  franchises  is  the  most  important 
branch  of  the  department,  as  the  Board  must  ascertain  the  rate  of 
assessment  of  real  property  in  every  city,  town  and  village  in  the 
State,  amounting  to  1.430  tax  districts  -in  all.  In  1912  there 
were  8,193  valuations  made. 


31 


WEIGHTS  AND   MEASURES   DEPARTMENT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill    $20,200.00 

Supply  bill   4,000 .  00 

Total   $30,200.00 


Amount  asked  for  in  1913: 
Appropriation  bill $36,320 .  00 


This  Department  originally  cost  the  State  the  sum  of  only 
$300  per  year,  but  since  the  advent  of  the  present  incumbent  has 
gradually  increased  its  force,  until  it  now  consists  of  a  Superin- 
tendent, two  deputies,  two  special  deputies  and  ten  other  em- 
ployees and  this  year  asks  for  an  appropriation  of  $36,320. 

We  believe  that  this  Dej)artment  has  become  expensive  out  of 
proportion  to  its  usefulness.  Every  city  and  county  in  the  State 
has  its  own  sealer  of  weights  and  measures.  The  duty  of  enforc- 
ing the  laws  establishing  standard  weights  and  measures,  and  of 
prosecuting  violators  of  those  laws,  is  imposed  upon  these  city  and 
county  officials,  and  the  power  of  the  State  Department  is  limited 
to  a  general  supervision  of  their  work. 

The  principal  duties  of  the  traveling  inspectors  of  this  depart- 
ment appear,  from  the  testimony  of  the  Superintendent  of  Weights 
and  Measures,  to  be  in  instructing  local  officials  in  their  duties, 
rendering  them  assistance  when  disputes  arise  over  the  accuracy 
of  the  standards,  and  advising  how  to  get  evidence  against  vio- 
lators, besides  which  considerable  correspondence  is  handled  in 
the  office. 

The  proposition  that  the  laws  against  the  use  of  fraudulent 
weights  and  measures  should  be  rigidly  enforced  is  agreed  to  by 
every  one,  and  that  great  improvement  in  conditions  has  resulted 
in  recent  years  from  the  agitation  of  this  subject  must  also  be  con- 
ceded, but  we  believe  that  the  correct  policy  of  the  State  would 
be  to  hold  local  authorities  strictly  responsible  for  the  perform- 
ance of  their  duties,  rather  than  to  maintain  large  and  expensive 
State  bureaus  first  to  instruct  them  and  then  to  watch  them 
while  at  work.  We  recommend  that  the  sum  of  $14,050  be  al- 
lowed this  vear,  a  decrease  over  1912  of  $16,150. 


33 


STATE  ATHLETIC  COMMISSION. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill    $7,300.00 

Supply  bill   2,750 .  00 

Total   $10,050.00 


The  act  creating  this  Department,  expressly  provides  that  the 
expense  of  administration  shall  not  exceed  the  sum  of  $5,000  per 
year,  and  the  appropriations  last  year  were  in  excess  of  the 
amount  fixed  by  the  statute.  The  fees  collected  last  year  were 
considerably  in  excess  of  the  statutory  allowance,  but  unless  the 
act  is  amended  the  sum  of  $5,000  is  all  that  can  be  appropriated, 
a  decrease  of  $5,050  over  1912. 

INSTITUTE  FOR  THE  STUDY  OF  MALIGNANT 

DISEASES. 

The  State  has  erected  a  building  in  the  city  of  Buffalo  for  the 
use  of  the  "  Institute  for  the  Study  of  Cancer  and  Malignant 
Diseases,"  and  the  building  erected  under  the  appropriation  of 
1912  is  now  nearly  completed.  It  is  necessary,  of  course,  that 
this  building  shall  be  finished,  its  equipment  installed  and  its 
maintenance  provided  for.  This  will  require  an  appropriation 
this  year  of  $85,275  as  against  appropriations  last  year  of 
$96,400. 

While  this  institution  does  effective  work,  and  its  object  is 
commendable,  it  should  never  have  received  an  endowment  of 
State  funds,  and  it  is  another  example  of  the  careless  way  in 
which  burdens  have  been  heaped  upon  our  taxpayers. 

THE    BOARD    OF    EXAMINERS    OF    FEEBLE-MINDED 
CRIMINALS  AND  OTHER  DEFECTIVES. 

By  chapter  445  of  the  Laws  of  1912,  this  Board  was  created 
for  the  purpose  of  making  an  examination  of  feeble-minded 
criminals,  and  other  defectives,  and  it  has  very  important  and 
enlarged  powers.  In  our  opinion,  this  is  an  experiment  on  which 
the  State  should  never  have  entered.  It  is  one  of  many  classes  of 
work  that  is  being  continually  urged  on  the  State,  involving 
large  expenditures   of  money.      This   policy,   if  continued,   will 


33 

eventually  bankrupt  the  State.  As  this  Board  has  not  yet  re- 
ceived any  approjiriation  for  its  work,  we  believe  that  this  is  the 
right  time  to  stop  and  that  the  act  should  be  repealed. 

BOARD  OF  PORT  WARDENS  OF  THE  STATE  OF 

NEW  YORK. 

This  Board,  consisting  of  seven  members,  appointed  by  the 
Governor,  has  cognizance  of  certain  matters  connected  with  ves- 
sels arriving  at  the  port  of  New  York.  Their  compensation  is 
provided  for  by  fees  collected  from  ship-owners. 

The  State  ought  not  to  be  called  upon  to  make  any  specific  ap- 
propriation.    We,   therefore,    recommend   that  none  be   allowed. 

INTERSTATE  BRIDGE  COMMISSION. 

In  the  proposed  Appropriation  Bill  this  Commission  asks  for 
the  sum  of  $27,860.  A  Special  Bill,  however,  has  been  intro- 
duced to  provide  for  their  expenses  in  connection  with  the  work 
for  the  interstate  bridge,  and  we  recommend  that  this  item  be 
taken  out  of  the  Appropriation  Bill. 


EDUCATIONAL. 

In  the  Comptroller's  tabulation  of  appropriations  for  educa- 
tional purposes  there  are  included  amounts  for  the  Department 
of  Education,  the  maintenance  of  the  School  of  Ceramics  at 
Alfred  University,  and  for  the  support  and  instruction  of  the 
blind,  deaf  and  dumb  in  various  institutions.  The  total  appro- 
priations in  1912  for  these  three  subdivisions  were: 

Department  of  Education  and  Normal  Schools: 

Appropriation   Bill    $7,392,440  00 

Supply  Bill 153,581  40 

Special         Bills  (including 

amounts    for    completion    of 
building     and     purchase    of 

books  for  library)   1,588,000  00 

$9,134,021  40 

Support  and  Instruction  of  Blind,  Deaf  and  Dumb: 

Appropriation  Bill $191,984  89 

Supply   Bill 30,888  00 

222,872  89 


u 

School  of  Ceramics  at  Alfred  UniversHy: 

Appropriation  Bill $13,350  00 

Supply  Bill 25,800  00 

$39,150  00 

Total $9,39G,044  29 

The  amounts  asked  for  in  1913  are: 

Department  of  Education  and  Normal  Schools: 

Appropriation  Bills $7,761,870  00 

Supply  Bill 207,205  00 

Special  Bills 730,000  00 

$8,099,075  00 

Support  and  Instruction  of  Blind,  Deaf  and  Dumb: 

Appropriation  Bill $389,740  00 

Supply  Bill 39,811  09 

429,551  09 

School  of  Ceramics  at  Alfred  University : 

Appropriation  Bill 16,400  00 

Total $9,145,026  09 


k 


Included  in  the  schedule  of  appropriations  requested  by  the  De- 
partment of  Education  this  year  is  a  Special  Bill  providing 
$700,000  for  the  purchase  of  books  for  the  State  Library. 

Inasmuch  as  a  large  part  of  the  amount  appropriated  last  year 
was  not  expended,  and  there  is  now  stored  in  the  basement  of 
the  new  Education  Building,  a  considerable  portion  of  the  books 
that  were  purchased,  we  believe  that  the  sum  of  $100,000  will  be 
a  suflicient  sum  to  appropriate  this  year  to  provide  all  the  new 
books  the  library  force  can  properly  care  for.  If  our  recom- 
mendation is  approved  by  the  Legislature,  the  reduction  in  this 
item  will  therefore  be  $600,000. 

Your  Committee  recommends  that  the  following  appropriations 
of  funds  will  be  sufficient  during  the  coming  year: 

Department  of  Education  and  Normal  Schools: 

Appropriation  Bill    $7,385,780  00 

Supply  Bill 164,705  00 

Special  Bills 130,000  00 

$7,680,485  00 


35 

Support  and  Instruction  of  Blind,  Deaf  and  Dumb: 

Appropriation  Bill $279,570  G9 

Supply  Bill    39,811  00 

$319,381  69 

School  of  Ceramics  at  Alfred  University : 

Appropriation  Bill 13,500  00 


Total $8,013,366  69 


Your  Committee  could  not  in  the  very  brief  time  at  its  dis- 
posal make  an  exhaustive  examination  of  the  numerous  branches 
of  work  conducted  by  the  Department  of  Education.  Our  Chief 
Examiner  was  allowed  by  the  Committee  only  a  few  days  to 
superficially  inquire  into  the  general  plan  of  administration,  in 
which  task  he  was  afforded  generous  assistance  by  the  officials  of 
the  department,  but  we  realized  that  a  thorough  examination 
would  require  several  months  and  therefore  went  only  far  enough 
to  enable  us  to  imderstand  the  purpose  of  the  various  divisions, 
so  as  to  intelligently  consider  and  decide  upon  the  lowest  amount 
necessary  to  be  appropriated. 

The  Committee  itself  also  made  an  inspection  of  the  new 
Educational  Building,  conducted  public  hearings  and  had  many 
conferences  with  officials  of  the  Department  this  year. 

As  a  result  of  such  examination  as  we  have  made,  we  are  of  the 
opinion  that  a  thorough  investigation  should  be  made  to  deter- 
mine the  value  of  several  expensive  features  of  the  work,  gen- 
erally established  by  special  acts  of  the  Legislature,  and  the  pro- 
priety of  such  work  being  borne  by  the  State ;  and  also  to  ascer- 
tain if  it  is  not  possible  to  utilize  the  information  stored  in  some 
of  the  technical  divisions  for  the  benefit  of  other  departments. 

The  whole  subject  of  the  educational  work  is  so  important  to 
the  people  that  we  do  not  believe  it  should  be  dealt  with  in  a 
superficial  way,  and,  therefore,  we  refrain  from  making  any 
specific  recommendations  and  merely  confine  ourselves  to '  the 
suggestion  that  the  proposed  examination  be  made. 

AGRICULTURE. 

The  efforts  and  expenditures  of  the  State  to  improve  agricul- 
tural conditions  should  properly  be  classified  in  two  divisions, 
namely,  protective  and  educational. 

The  protective  division  now  embraces  the  duties  and  expendi- 


36 

turos  of  the  Dcpartniont  of  Agriciillure,  which  also  includes  such 
educational  features  as  Farmers'  Institutes,  Farm  Bureaus,  local 
county  fairs  that  receive  State  funds  and  partial  responsibility 
for  the  management  of  the  State  Fair  at  Syracuse.  In  this 
division  should  also  be  put  the  Agricultural  Experiment  Station 
at  Geneva. 

The  educational  division  embraces  the  activities  and  ex- 
penditures of  the  New  York  State  College  of  Agriculture  at 
Cornell,  and  the  secondary  schools  of  agriculture  at  Alfred  Uni- 
versity, St.  Lawrence  University,  Morrisville,  Cobleskill  and 
Long  Island.  Under  this  head  also  may  be  considered  the  various 
efforts  to  promote  the  study  and  practice  of  scientific  forestry, 
which  engages  the  attention  of  tlie  State  College  of  Agriculture 
at  Cornell,  the  State  College  of  Forestry  at  Syracuse  University, 
and  the  Conservation  Commission. 

The  total  expenditures  for  all  of  these  subjects  during  the 
year  1912  were  as  follows: 

Appropriation  Bill $1,137,058  80 

Supply  Bill    607,670  71 

Special  Bills 887,000  00 

Total $2,631,729  51 

Amounts  asked  for  in  1913: 

Appropriation  Bill $1,599,558  80 

Supply  Bill 1,401,759  38 

Special  Bills 421,000  00 

Total $3,422,318  18 


In  order  to  properly  present  the  different  activities  in  this  line 
of  work  it  is  necessary  to  discuss  them  under  their  separate  heads. 

Agricultural  Department. 
The  appropriations  for  the  year  1912  were: 

Appropriation  Bill $479,000  00 

Supply  Bill 273,323  61 

Special  Bills 200,000  00 

Total $952,323  61 


37 

Amounts  asked  for  in  1913: 

Appropriation  Bill $537,140  00 

Supply  Bill 536,000  00 

Total $1,073,140  00 


"We  have  carefully  gone  over  these  figures  with  the  Commis- 
sioner, and  believe  that  the  sum  of  $731,560  will  be  sufficient  to 
carry  on  the  work  of  this  Department  for  the  coming  year,  a 
decrease  from  1912  in  the  Appropriation  and  Supply  Bills  of 
$20,763.61.  The  specific  items  connected  with  these  matters  will 
be  discussed  later  on. 

This  Department  has  to  do  primarily  with  the  enforcement 
of  the  laws  relating  to  agriculture;  diseases  of  animals;  produc- 
tion and  marketing  of  dairy  products;  sanitary  conditions  under 
which  they  are  produced ;  inspection  of  all  nurseries  and  nursery 
stock ;  enforcement  of  the  pure  food  laws  and  of  the  laws  against 
the  fraudulent  sale  of  oleomargarine;  and  the  inspection,  brand- 
ing and  analysis  of  manufactiu-ed  cattle  feeding  stuff  and  chemi- 
cal fertilizers. 

The  organization  of  the  Department  at  present  includes  a  first 
assistant  commissioner  and  seven  other  assistant  commissioners, 
located  in  separate  offices  in  different  parts  of  the  State.  After 
investigation,  we  believe  that  some  of  these  offices  are  unnecessary, 
and  that  four  deputy  commissioners  would  do  all  the  work.  The 
Commissioner  of  Agriculture  has  prepared  legislation  that  will 
permit  him  to  make  the  reductions  we  suggest  and  we  recom- 
mend that  it  be  passed. 

The  inspection,  analysis  and  branding  of  fertilizers  and  chemi- 
cal feeding  stuff,  and  the  inspection  of  nursery  stock,  involves 
a  large  expense.  The  Commissioner  of  Agriculture  has  recom- 
mended legislation  increasing  the  fees  to  be  charged  for  this 
service,  and  this,  with  other  revenues  suggested  by  him,  will  make 
his  Department  practically  self-sustaining,  and  we  approve  this 
legislation. 

Among  the  important  matters  confided  to  the  Department  of 
Agriculture  is  the  examination  of  cattle  for  tuberculosis,  and  of 
horses  for  glanders,  and  the  destruction  of  animals  afflicted  with 
these  diseases.  The  State  pays  the  owners  of  tubercular  cattle 
and  glandered  horses  thus  destroyed  from  50  to  80  per  cent,  of 
their  appraised  value.  This  payment  has  now  become  a  large 
item  of  expense,  amounting  to  $250,000  last  year,  and  the  whole 


38 

subject  is  a  dillicult  one  for  the  Department  to  handle.  The 
Committee  carefully  considered  the  matter  with  the  Commis- 
sioner, and  it  aj)pears  plain  to  us  that,  for  the  protection  of 
humanity,  as  well  as  healthy  animals,  the  inspection  must  be 
extended  and  diseased  aninnils  must  be  destroyed.  Since  pro- 
tection to  life  is  the  necessity,  it  seems  to  us  that  the  State  should 
not  be  required  to  pay  a  penalty  for  removing  a  menace  to  life. 
It  is  conceded  that  cattle  completely  infected  with  tuberculosis 
produce  infected  milk  niul  diseased  offspring  and  arc  therefore 
valueless  to  the  owner,  and  it  is  also  conceded  that  horses  infected 
witJi  glanders  are  without  value  to  the  owner.  In  our  opinion 
no  compensation  should  be  made  by  the  State  when  such  animals 
are  destroyed.  It  appears,  however,  that  cattle  in  which  the  dis- 
ease is  localized  to  only  one  organ  do  produce  healthy  offspring 
and  thus  have  a  value.  The  Commissioner  advised  that  it  would 
be  too  radical  a  change  to  completely  abolish  all  payments,  and 
therefore  we  recommend  that  the  law  be  changed  so  that  in  future 
the  payment  for  cattle  having  generalized  tuberculosis  be  reduced 
to  $15  for  each  animal,  the  payment  for  cattle  having  only 
localized  tuberculosis  be  continued  as  at  present,  and  the  payment 
for  glandered  horses  be  discontinued  entirely.  We  recommend 
the  passage  of  the  amendments  to  the  law  prepared  and  sent  to 
the  Legislature  by  the  Commissioner  of  Agriculture  at  our 
request. 

The  State  for  several  years  has  made  an  appropriation  of 
$250,000  which  has  been  distributed  among  certain  fair  asso- 
ciations of  the  State.  Formerly  the  receipts  of  the  racing  asso- 
ciations were  used  for  that  purpose,  but  upon  the  repeal  of  tliat 
law,  the  Stat©  appropriations  came  into  existence.  We  believe 
that  the  time  has  come  when  these  appropriations  should  ceiise. 
Section  9  of  article  8  of  the  Constitution  provides,  that  "  neither 
the  credit  nor  the  money  of  the  State  shall  be  given  or  loaned 
to  or  in  aid  of  any  association,  corporation,  or  private  under- 
taking." The  State  now  is  expending  a  large  amount  of  money 
in  connection  with  its  State  Fair,  and  localities  should  be  made 
to  take  care  of  their  own  local  fairs  and  should  not  receive  State 
aid.  These  payments  to  private  fair  associations  seem  to  be 
plainly  forbidden  by  the  provisions  of  the  Constitution  as  long 
as  the  associations  are  private  corporations,  as  at  present,  and  in 
addition  it  is  clearly  inequitable  to  ask  the  State  as  a  whole  to 
pay  for  institutions  purely  local  in  their  character. 


39 

Wo  do  not  desire  in  any  way  to  discredit  the  good  work  un- 
dertaken by  county  fair  associations,  but  the  provision  of  the 
Constitution  we  have  quoted  was  expressly  designed  to  prevent 
the  distribution  of  State  funds  to  such  private  enterprises,  and 
its  rigid  enforcement  is  absolutely  necessary  to  prevent  the  tax 
upon  the  people  rising  higher  every  year.  It  will  be  necessary 
this  year  to  appropriate  $250,000  to  reimburse  fair  associations 
for  premiums  paid  by  them  in  the  fall  of  1912,  with  the  under- 
standing that  they  would  be  reimbursed ;  but  we  recommend  that 
the  law  should  be  changed  so  that  all  appropriations  for  this 
purpose  be  discontinued. 

For  a  great  many  years  the  Agricultural  Department  has  had 
appropriations  for  the  holding  of  farmers'  institutes,  which  are 
purely  educational  in  their  character,  and  are  properly  included 
in  the  extension  work  in  agriculture.  A  proper  division  of  the 
functions  connected  with  the  agricultural  interests  of  the  State 
should  simply  impose  upon  the  Commissioner  of  Agriculture  the 
enforcement  of  the  agricultural  laAvs,  and  we  do  not  believe  that 
in  the  future  any  work  in  regard  to  teaching  or  extension  work 
should  be  undertaken  by  his  Department.  We  therefore  recom- 
mend that  approi>riations  for  farmers'  institutes  under  the  pro- 
tection of  the  Commissioner  of  Agriculture  should  cease. 

The  present  Commissioner  of  Agriculture  has  made  important 
recommendations  to  us  along  other  lines  of  work,  and  we  believe 
that  a  reorganization  of  his  Department  as  he  suggests  will  pro- 
duce economy,  create  revenue  and  bring  the  Department  to  a 
higher  standard  of  efficiency,  and  we  recommend  that  the  legisla- 
tion proposed  by  him  be  enacted  into  law. 

New  York  State  College  of  Agriculture  at  Cornell  University. 

This  college  is  one  of  the  land  grant  colleges  of  the  country, 
established  under  the  provisions  of  the  Morrill  Land  Grant  Act, 
and  is  supported  by  the  State  government,  and  also  receives  some 
support  from  the  National  government,  and  is  designed  to  be 
the  real  head  of  the  system  of  agricultural  teaching  in  the  State. 
Already  the  State  has  expended  very  large  sums  of  money  in  the 
erection  of  buildings,  and  in  the  maintenance  of  this  college,  and 
can  feel  proud  of  the  fact  that  under  the  direction  of  Dean 
Bailey  it  undoubtedly  has  at  present  the  best  agricultural  college 
in  the  world. 


40 

Tlio  iinportnncc  of  inoroasinp;  tlie  ai>i'ici!]lin;il  prothicts  of  tlio 
Stjito  ib  (tiio  of  our  most  serious  problems,  and  is  conceded  by 
everyone  to  bo  one  of  the  most  important  questions  now  beioro 
our  people,  and  all  the  support  possible  should  be  afforded  the 
State  College  of  Agriculture  to  assist  in  accomplishing  this  pur- 
pose. The  increase  in  the  number  of  students  at  the  college  has 
been  enormous,  and  to-day  there  are  about  2,000  boys  and  girls 
enrolled  as  students. 

The  college  also  does  a  large  amount  of  work  in  the  way  of 
assisting  individual  farmers,  and  in  oo-operating  with  all  the 
agricultural  interests  of  the  State,  by  means  of  faraiers'  meet- 
ings, farm  trains,  schools  in  interior  counties  of  the  State,  issuing 
bulletins,  and  visits  to  different  sections  of  the  State  by  members 
of  its  staff,  and  these  activities  extend  to  and  reach  practically 
every  important  agricultural  interest  in  the  State. 

The  cost  of  maintenance  is,  of  necessity,  growing  larger  each 
year,  and  the  money  must  necessarily  be  appropriated  by  the 
Legislature, 

In  1012  the  total  appropriations  in  connection  with  the  ISTevv 
York  State  College  of  Agriculture  were  actually  $788,000,  but 
in  addition  the  board  of  trustees  was  authorized  to  make  con- 
tracts for  $129,000  additional,  in  all  $917,000.  We  recommend 
this  year  that  the  sura  of  $G00,000  be  allowed  in  the  Appropria- 
tion and  Supply  Bills.  This  amoimt  includes  the  additional  cost 
of  maintenance,  but  does  not  provide  for  the  equipment  of  build- 
ings already  erected  under  the  authority  of  the  Legislature.  In 
order  to  provide  payment  for  contractual  liabilities  authorized  by 
the  Legislature  of  1912  for  new  buildings,  amounting  to 
$129,000,  to  furnish  equipment  for  present  buildings  already 
constructed  or  undergoing  construction,  and  for  extensions  and 
additions  to  present  buildings  and  groups  of  buildings,  the  col- 
lege this  year  will  require  an  additional  sum  of  $r''>34,000,  which 
should  be  provided  for  in  a  special  bill.  We  do  not  deem  it  wise 
to  recommend  the  erection  of  any  large  new  buildings,  until 
the  present  group  of  buildings  already  under  construction  ia 
completed. 

Secondary  Schools  of  Agriculture. 

Outside  of  the  State  College  of  Agriculture  there  has  already 
been  authorized  by  the  Legislature  the  creation  of  five  secondary 
schools  of  agriculture,  one  located  at  Alfred  University,  one  at 


41 

St.  Lawrence  University,  one  at  ^forrisville.  one  at  Cobleskill, 
and  one  on  Long  Island. 

Successive  Legislatures  have  established  these  schools,  and  it 
would  perhaps  be  presumptuous  for  us  to  declare  that  the  action 
was  unwise,  but  the  fact  has  come  out  very  clearly  in  our  exami- 
nation that  these  numerous  schools  are  going  to  add  a  great  item 
of  expense  to  the  State  budget,  and  the  benefit  to  be  derived 
therefrom  cannot  yet  be  estimated  to  be  very  large.  They  should 
be  confined  strictly  to  secondary  education  of  agriculture,  and 
should  not  be  permitted  to  go  into  extension  or  experimental  lines 
of  work. 

The  schools  already  provided  are  more  than  enough  to  satisfy 
all  the  needs  for  special  education  in  agriculture,  and  no  more 
new  schools  should  be  authorized  by  the  Legislature.  There  have 
already  been  bills  introduced  in  the  present  session  to  establish 
five  more  of  these  schools,  and  if  these  are  authorized  and  the  pol- 
icy continued  we  may  expect  that  every  county  in  the  State  will 
demand  an  agricultural  school,  entailing  a  huge  additional  bur- 
den of  expense.  At  the  State  College  of  Agriculture  at  Cornell, 
the  State  has  provided  for  the  training  of  teachers  of  agriculture, 
and  the  State  should  not  undertake  to  do  any  more.  The  com- 
mon schools  in  the  more  populous  communities  should  utilize  the 
services  of  these  trained  instructors,  and  by  co-operation  less  pop- 
ulous communities  can  secure  teachers  for  at  least  part  of  the 
year  for  special  classes,  and  thus  the  benefits  of  what  the  State 
has  already  done  can  be  enjoyed  by  practically  all. 

The  present  secondary  schools  of  agriculture  all  have  separate 
boards  of  managers.  Morrisville  and  Cobleskill  and  Long  Island 
are  controlled  by  State  boards,  and  at  St.  Lawrence  University 
and  at  Alfred  University  the  management  is  by  the  board  of  trus- 
tees of  those  universities.  The  schools  are  State  schools,  but  are 
being  treated  at  present  as  local  in  their  character,  although  they 
are  supported  entirely  by  State  funds.  We  believe  that  this  sys- 
tem is  wrong,  and  that  there  should  be  one  State  board  of  trustees 
having  control  of  all  the  secondary  schools,  so  as  to  provide  for 
a  uniform  system  of  education,  and  the  limitation  of  their  work 
to  their  proper  functions,  and  we  recommend  legislation  to 
this  end. 


42 

In  1912  the  appropriations  for  the  secondary  schools  of  agricul- 
ture were  as  follows : 

Alfred  University $18,550  00 

Morrisville 72,427  10 

St.  Lawrence  University 55,000  00 

Long  Island  (purchase  of  land) 50,000  00 

Total $225,977  10 


No  provision  was  made  for  the  Cobleskill  School  of  Agricul- 
ture, the  original  appropriation  having  been  made  in  1911  for 
the  purchase  of  land  and  erection  of  buildings. 

The  amounts  asked  for  this  year  and  the  amounts  recommended 
by  us  in  connection  with  these  schools  are  as  follows : 

Asked  for  Recommended 

Alfred  University    $71,000  00  $35,000  00 

Horrisvillc 132,830  00  39,730  00 

St.  Lawrence  University 44,859  38  41,072  15 

Cobleskill \ 76.600  00 


•    • 


A  special  bill  in  connection  with  Long  Island  Schools  is  now 
before  the  Legislature  asking  for  $704,500  for  construction 
purposes. 

EXTENSION  WORK. 

The  educational  work  in  relation  to  agriculture  consists  of  the 
teaching  done  in  the  State  Colleges  and  Secondary  Schools,  and 
the  extension  work  of  furnishing  agricultural  education  and  agri- 
cultural information  to  the  citizens  of  the  State  in  their  own 
homes  or  communities. 

This  extension  work  in  connection  with  agriculture  is  of  great 
value  to  our  people.  It  is  conducted  in  many  ways,  some  of  which 
are  farm  bureaus,  farm  institutes,  farm  experimental  trains, 
summer  and  winter  schools,  lectures,  the  issuing  of  bulletins,  etc. 
This  extension  work,  in  some  degree,  is  now  being  undertaken 
by  not  only  the  schools  of  agriculture  but  by  a  number  of  the 
State  departments,  and  some  steps  should  be  taken  at  once  to  cen- 
tralize the  work,  so  as  to  eliminate  some  of  the  present  duplication 
of  effort  and  expense  in  connection  therewith. 


43 

By  chapter  785  of  the  Laws  of  1907  there  was  created  the  ''  New 
York  State  Agricultural  Advisory  Board/'  which  had  for  its  ob- 
ject the  promotion  of  agricultural  education  and  the  advancement 
of  country  life,  and  this  Board  was  directed  to  report  directly  to 
the  Governor  on  or  before  the  first  day  of  February.  This 
Advisory  Board  is  made  up  of  the  leading  men  connected  with 
agriculture  in  the  State  of  ISTew  York,  and  we  believe  the  problems 
relating  to  the  extension  work  of  the  State,  and  other  matters  here- 
tofore suggested  by  us,  should  be  referred  to  this  Board,  and  that 
they  should  be  asked  to  make  a  careful  study  of  the  same,  and  to 
make  a  report  to  you  with  their  recommendations  prior  to  the  be- 
''  ginning  of  the  next  Legislature,  so  that  proper  legislation  can  be 
taken  up  for  consideration. 

STATE  FAIR  COMMISSION. 
The  appropriations  for  the  year  1912  were: 

Appropriation  Bill $33,700  00 

Supply  Bill 112,000  00 

Special  Bills 200,000  00 


Total $3-15,700  00 


The  amounts  asked  for  this  year  are : 

Appropriation  Bill $34,200  00 

Supply  Bill 124,500  00 


Total $158,700  00 


We  have  gone  over  these  figures  carefully  and  are  of  the  opinion 
that  the  sum  of  $104,700  is  sufficient  to  provide  the  State  Fair 
Commission  this  year  with  the  funds  necessary  to  run  the  depart- . 
ment  in  an  efficient  and  economical  manner. 

The  State  Fair  Commission  is  asking  for  the  appropriation  of 
a  large  amount  of  money  for  new  buildings  on  the  fair  ground  at 
Syracuse,  and  there  is  no  doubt  that  the  fair  would  be  much  more 
attractive  and  of  wider  usefulness  if  the  buildings  are  provided. 
We  believe,  however,  that  the  money  necessary  should  be  provided 
for  in  a  bond  issue  rather  than  by  direct  appropriations,  and  w^e 
would  recommend  that  this  course  be  adopted  in  the  future  in  con- 


44 

nection  with  the  improvements  at  the  State  Fair.  We  would  also 
recommend  that  the  matter  be  taken  up  at  once  and  the  State  Fair 
be  completed  as  soon  as  possible  upon  the  plans  now  proposed. 

It  has  been  suggested  to  us  that  the  policy  of  paying  the  members 
of  the  State  Fair  Commission  should  be  changed.  The  interest 
in  this  institution  is  so  great  that  we  thoroughly  believe  that  the 
best  people  interested  in  agriculture  and  manufacturing  in  the 
State  can  be  induced  to  accept  honorary  positions  on  the  Board 
of  ^fanagers.  If  the  personnel  of  the  Commission  were  changed 
so  as  to  provide  for  the  appointment  of  one  member  from  each 
judicial  district  of  the  State,  such  a  commission  could  employ  and 
maintain  a  permanent  force  to  take  care  of  the  fair  grounds  and 
perform  the  detail  work.  We  believe  that  such  a  plan  would 
make  the  State  Fair  better  known  to  manufacturers  as  well  as! 
farmers,  and  might  result  in  an  annual  exposition  of  agriculture 
and  manufactures  that  would  be  of  great  practical  value.  We 
recommend  that  this  question  be  also  submitted  to  the  Advisory 
Board  of  Agriculture  for  consideration  and  report. 

NEW  YORK  STATE  COLLEGE  OF  FORESTRY  AT 

SYRACUSE. 

The  act  creating  this  college  provides  that  the  trustees  of  Syra- 
cuse University  shall  have  the  naming  of  a  majority  of  the  trus- 
tees of  this  college.  An  objection  was  raised  to  making  appro- 
priations to  this  institution  on  account  of  such  private  control  of 
the  Board  of  Trustees,  but  we  are  advised  that  an  act  has  been 
submitted  to  the  Legislature  and  is  now  pending  which  amends 
the  charter  of  the  College  of  Forestry  and  provides  that  the  trus- 
tees shall  all  be  appointed  by  the  Governor,  thus  giving  the  State 
complete  control  of  the  college. 

In  our  examination  the  dean  of  this  college  testified  that  they 
had  now  enrolled  160  students,  and  that  the  cost  of  maintenance 
must,  therefore,  be  considerably  increased: 

In  the  year  1912  the  Legislature  appropriated  fifty  thousand 
dollars  for  the  maintenance  of  this  college,  and  this  year  an  addi- 
tional amount  is  asked  for  a  new  building  and  for  maintenance, 
but  there  are  also  included  several  items  for  extension  work,  which 
we  believe  can  be  at  least  postponed  until  the  organization  of  the 
college  is  completed. 

We  have,  therefore,  recommended  that  the  sum  of  fifty  thousand 
dollars,  the  same  amount  as  last  year,  be  appropriated  in  a  lump 


45 

sum,  which  will  provide  for  the  increased  cost  of  maintenance  of 
the  larger  number  of  students,  and  if  there  is  a  surplus  it  maj  be 
used  for  such  other  work  as  the  faculty  may  decide. 

We  have  heretofore  recommended  that  the  general  policy  of 
extension  work  be  referred  to  the  New  York  State  Agricultural 
Advisory  Board,  and  we  would  also  suggest  that  the  question  as 
to  the  general  policy  of  future  extension  work  in  forestry  also  be 
submitted  to  same  board  for  its  consideration,  and  that  they  be 
requested  to  confer  with  experts  in  this  line  of  work  as  to  said 
policy.  Until  a  definite  policy  is  established  we  recommend  that 
;.  the  Conservation  Commission  and  other  agencies  cut  down  the 
amount  of  expenditures  for  extension  work  in  forestry. 

NATIONAL  GUARD. 
The  appropriations  for  the  year  1912  were: 

Appropriation  Bill $598,085  00 

Supply  Bill 156,966  79 

Special  Bills 66,500  00 


Total $821,551  79 

—  ' 

Amount  asked  for  in  1913  : 

Appropriation  Bill $668,495  00 

Supply  Bill 281,599  81 


Total $950,094  81 


Our  investigation  in  this  Department  disclosed  the  fact  that 
the  former  Adjutant-General  had  expended  large  amounts  of 
money  in  excess  of  his  appropriations,  and,  without  authority,  de- 
ducted these  amounts  so  expended  from  the  funds  available  dur- 
ing the  fiscal  year  of  1912-1913,  and  had  depleted  these  funds 
to  such  an  extent  that  it  became  necessary  for  the  Adjutant-Gen- 
eral to  ask  for  the  passage  of  a  special  bill  appropriating  $175,000 
for  the  purpose  of  immediately  raising  funds  to  maintain  his  office. 

We  have  carefully  gone  over  the  figures  for  the  next  fiscal  year, 
which  have  been  revised  by  the  Adjutant-General,  and  we  are  of 
the  opinion  that,  in  addition  to  the  special  appropriation  of 
$175,000,  the  sum  of  $774,207.48  should  be  appropriated  this 
year,  a  saving  from  the  year  1912  of  $47,344.31,  eliminating  the 
deficiency  bill  above  mentioned. 


46 


PENAL  INSTITUTIONS. 

Conneetctl  with  the  penal  institutions  of  the  State  are  the  fol- 
lowing boards  and  departments: 

The  State  Superintendent  of  Prisons,  who  is  a  constitutional 
officer ; 

The  Commission  of  Prisons,  wdiich  is  provided  for  in  the  Con- 
stitution, now  consisting  of  seven  members ; 

The  Board  of  Parole,  consisting  of  three  members,  two  of  whom 
are  appointed  by  the  Govenior; 

The  Board  of  Classification,  composed  of  the  Fiscal  Supervisor 
of  State  Charities,  the  State  Commission  of  Prisons,  the  Super- 
intendent of  Prisons  and  the  Lunacy  Commission,  in  all  twelve 
members ; 

The  Commission  on  New  Prisons,  consisting  of  five  members. 

Each  of  these  commissions,  boards  and  officers  have  certain 
official  duties  connected  with  the  State  prisons,  and,  in  our  opin- 
ion, in  order  to  promote  efficiency  and  economy,  all  of  them  should 
be  abolished  except  the  State  Superintendent  of  Prisons  and  the 
Commission  of  Prisons,  which  should  hereafter  consist  of  only 
three  members,  and  to  the  new  Commission  of  Prisons  should  be 
delegated  all  the  powers  now  exercised  by  the  other  bodies  pro- 
posed to  be  abolished. 

The  amounts  asked  for  this  year  by  the  commissions  and 
boards  proposed  to  be  abolished  are  as  follows: 

Probation  Commission $15,250  00 

The  Commission  of  Prisons 21,200  00 

Board  of  Parole 9,200  00 

Board  of  Classification 1,700  00 


Total ■ $47,350  00 


The  Commission  of  Prisons,  the  Probation  Commission,  the 
Board  of  Classification  and  the  Board  of  Parole  are  all  now 
allowed  separate  office  and  traveling  expenses,  and  each  have 
a  number  of  employees  which,  in  a  way,  are  duplicating  their 
efforts.     The  Prison  Commissioners  are  now  paid  at  the  rate  of 


47 

$10  a  clay  for  each  day's  service  rendered,  and  their  traveling 
expenses.  We  belie^'e  that  the  three  new  Prison  Commissioners 
to  be  appointed  to  take  the  place  of  the  present  members  of 
the  commissions  and  boards  as  aforesaid  should  be  paid  a  salary 
of  $5,000  a  year,  and  should  be  required  to  give  their  entire  time 
and  attention  to  the  work  now  performed  in  a  perfunctory  way 
by  these  different  boards  and  commissions. 

There  are  only  about  4,600  convicts  in  the  State  prisons,  and. 
it  seems  absurd  that  there  should  be  boards  and  officers  contain- 
ing twenty-eight  officials  having  diversified  powers  in  connection 
with  the  inmates  of  these  institutions.  By  amalgamating  these 
boards  and  bureaus  a  large  amount  of  office  expenses,  traveling 
expenses,  and  expenses  of  employees  can  be  eliminated. 

The  prisons  of  the  State  now  consist  of :  Auburn  Prison,  Sing 
Sing  Prison,  Clinton  Prison,  Great  Meadows  Prison,  Dannemora 
Hospital  for  Insane,  Matteawan  Hospital  for  Insane  Criminals, 
the  Prison  for  Women,  the  State  Farm  for  Women. 

New  Prisons 

There  is  at  present  and  has  been  in  the  past  an  agitation  in 
favor  of  building  a  new  prison  near  the  city  of  ISTew  York,  and 
the  abandonment  of  Sing  Sing  Prison. 

We  have  not  had  time  to  make  a  very  careful  study  of  this  situ- 
ation, but  it  seems  clear  that  Sing  Sing  Prison  is  antiquated  and 
unsanitary,  that  the  land  upon  which  it  is  located  is  too  restricted 
in  area  and  no  more  can  be  procured,  and  that  therefore  a  new 
prison  ought  to  be  located  upon  a  tract  of  land  of  enough  acreage 
to  employ  the  labor  of  some  of  the  prisoners  in  farm  work. 

At  Wingdale  the  State  already  owns  a  large  tract  of  land  which 
is  valuable.  A  contract  for  building  a  prison  on  this  site  was 
awarded  in  1910,  but  cancelled  in  1912,  and  large  damage  paid  to 
the  contractors.  Some  statements  were  made  to  us  about  the  cir- 
cumstances surrounding  this  abandonment  which  we  did  not  have 
time  to  investigate,  nor  did  we  have  time  to  personally  inspect  the 
site.  We  are  convinced,  however,  that  the  site  ought  not  to  be 
permanently  abandoned  without  further  investigation  by  the  Leg- 
islature. Either  at  Wingdale  or  some  other  place  accessible  to 
ISTew  York  city  a  modern  prison  ought  to  be  constructed,  and  the 
proper  location  should  be  determined  at  once. 

Our  attention  has  also  been  called  to  the  proposed  prison  farm 
for  women  at  Valatie.     A  large  tract  of  land  has  been  purchased 


48 

and  jil;iiis  liavo  boon  prepared  for  the  erection  of  a  larg-e  number 
of  cottii^-.'S.  This  proposed  prison  farm  will  require  the  expendi- 
ture of  about  $3,000,000. 

Before  any  more  money  is  spent  in  connection  with  this  propo- 
sition, we  believe  that  a  most  thorough  investie-ation  should  l)e 
made  as  to  the  cost  of  the  completion  of  this  prison,  the  advisa- 
bility of  constructing  the  same,  and  whether  or  not  some  plan  can 
be  adopted  that  will  secure  all  the  benefits  promised  for  a  smaller 
expenditure. 

We  suggest  that  all  buildings  in  connection  with  the  proposi- 
tion be  abandoned  until  it  is  definitely  settled  as  a  State  policy 
as  to  what  shall  be  the  methods  of  construction  adopted.  There 
are  no  buildings  completed  in  which  inmates  can  be  housed,  but 
there  is  a  warden  and  some  employees,  and  the  warden's  residence 
is  completed.  The  Legislature  is  asked  to  appropriate  the  sum 
of  $30,000  for  maintenance  and  repairs.  We  recommend  that  the 
warden  and  all  the  employees  be  discharged  and  the  property  be 
placed  in  charge  of  a  caretaker  at  an  expense  of  not  to  exceed 
$1,000  a  year. 

Prisons  Should  Be  Self-Sustaining. 

The  most  important  proposition  connected  with  the  prisons  is 
the  problem  relating  to  the  cost  of  maintenance. 

It  is  the  judgment  of  many  previous  investigators,  and  also  our 
own  judgment,  that  the  industries  in  the  prisons  should  be  so 
organized  that  the  prisons  would  be  self-sustaining.  During  our 
examination  both  11  r.  F.  H.  Mills,  the  Sales  Agent,  and  the 
Superintendent  of  Prisons  testified  that  in  their  opinion  the 
prisons  can  be  made  self-sustaining,  except  that  the  present 
theory  of  the  law,  as  they  construed  it,  requires  that  more  than 
one-half  of  the  prisoners  be  kept  upon  unproductive  work  for  the 
purpose  of  giving  them  such  industrial  training  that  they  would 
be  enabled  to  earn  a  living  when  they  are  released,  and  for  that 
purpose  there  had  been  created  in  the  prisons  a  large  number  of 
different  industries  as  training  schools  which  were  in  themselves 
a  source  of  expense  and  not  of  profit.  The  present  provisions  of 
the  statute  would  seem  to  indicate  that  the  Superintendent  of 
Prisons  should  employ  the  men  who  are  serving  first  terms  along 
the  lines  of  industrial  training  and  instruction.  The  interpreta- 
tion placed  upon  this  statute  by  the  Superintendent  was  that  he 
was  compelled  to  teach  these  prisoners  technical  trades.     In.  our 


49 

judgment  he  might  just  as  well  have  coustrued  the  statute  that 
teaching  this  class  of  prisoners  modern  methods  of  agriculture 
would  better  lit  them  for  the  task  of  earning  an  honest  living 
when  they  are  released  than  an  attempt  to  teach  them  an  indus- 
trial trade  would  do. 

We  are  also  of  the  opinion  that  a  very  careful  study  should  be 
made  of  the  utilization  of  prisoners  in  farm  labor  whereby  the 
needs  of  not  only  the  Prison  Department  but  of  other  State  insti- 
tutions for  farm  products  should  be  supplied. 

Under  the  present  law  all  municipal  bodies  of  the  State  are 
required  to  purchase  of  the  prisons  any  articles  made  in  the 
State's  prisons,  and  there  are  a  number  of  industries  now  con- 
nected with  these  institutions.  With  a  careful  study  of  the  de- 
mands of  public  institutions  there  is  no  reason  why  the  manu- 
facturing industries  of  the  prisons  should  not  be  placed  upon  the 
basis  of  supplying  the  demands  for  such  things  upon  which  a 
fair  profit  could  be  made.  We  recommend  that,  if  necessary, 
legislation  be  enacted  providing  for  the  -working  of  the  prisoners 
in  the  State  institutions  for  the  purpose  of  making  them  self- 
sustaining. 

The  State  hospitals  for  the  insane  last  year  paid  out  for  batter 
alone  approximately  the  sum  of  $400,000,  and  the  dairy  products 
used  in  the  State  hospitals,  charitable  institutions  and  prisons  un- 
doubtedly amount  to  more  than  $1,000,000  a  year. 

If  dairy  products  could  be  produced  upon  the  State  farms  with 
convict  labor,  there  ought  to  be  an  enormous  saving  made  in  these 
articles,  and  the  inmates  who  would  be  employed  in  doing  this 
class  of  work  would  be  greatly  benefited,  if  employed  out  of  doors. 

At  present  the  earnings  of  the  prisons  are  carried  in  an  account 
known  as  "  The  Prison  Capital  Fund,"  and  from  time  to  time 
the  surplus  of  these  earnings  is  paid  into  the  general  funds  of  the 
State.  We  are  of  the  opinioii  that  these  earnings  should  be  applied 
toward  the  cost  of  maintenance,  and  that  legislation  should  be 
passed  permitting  their  use  for  that  purpose  under  proper 
restrictions. 

We  desire  also  to  call  particular  attention  to  another  fund 
kno\vn  as  "  The  Convicts'  Deposits  and  Miscellaneous  Earnings 
Fund."  In  this  fund  is  deposited  the  money  which  convicts  have 
when  they  enter  the  prisons,  and  there  is  credited  their  earnings 
during  the  time  they  are  in  the  prison.  At  present  these  funds, 
so  far  as  we  can  learn,  are  subioct  to  no  audit  whatever. 


50 


STATE  HOSPITAL  COMMISSION  AND  STATE  CHARI- 
TABLE INSTITUTIONS. 

At  present  in  this  State  there  are  fourteen  hospitals  for  the 
insane,  and  twcntj-one  institutions  under  the  charge  of  the  State 
Board  of  Charities.  In  addition,  the  State  also  contributes  to  the 
support  of  eleven  institutions  for  the  care  of  the  blind,  deaf  and 
dumb. 

Each  and  every  one  of  these  different  institutions  is  governed 
by  a  board  of  managers  appointed  by  the  Governor,  and  these 
boards  of  managers  are  in  a  way  practically  independent  of  con- 
trol by  any  State  body,  and  have  practically  the  charge  of  the 
expenditures  of  State  funds,  the  employment  of  labor  in  the  insti- 
tutions, and  direct  the  general  policy  of  the  institutions. 

The  State  Hospital  Commission,  appointed  by  the  Governor, 
has  only  advisory  power  over  the  State  hospitals  and  the  expendi- 
ture of  some  of  the  funds  connected  therewith.  The  State  Board 
of  Charities  has  only  advisory  powers  over  the  State  charitable 
institutions,  and  while  there  is  a  Fiscal  Supervisor  of  Charities, 
who  arranges  for  the  purchase  of  supplies  by  contract,  his  sole 
power  relates  to  the  procuring  of  bids,  and  he  has  very  little  to 
do  with  the  amoimt  of  supplies  purchased  or  the  paying  for  the 
same. 

The  deaf,  dumb  and  blind  institutions  are  practically  all  pri- 
vate institutions  to  which  the  State  contributes  for  the  support 
of  inmates  committed  thereto.  The  cost  to  the  State  of  these 
different  institutions  is  growing  tremendously  in  amount,  and  this 
year  the  State  hospitals  are  asking  for  the  sum  of  $11,792,704.54. 
The  charitable  institutions  are  asking  for  the  sum  of  $5,082,- 
244.50,  and  the  blind^  deaf  and  dumb  institutions  are  asking  for 
$429,551.09. 

State  Has  Little  Control  Over  Expenditures. 

Over  the  control  of  the  expenditure  of  these  enormous  sums  of 
money  the  State  directly  has  practically  very  little,  if  anything, 
to  say,  and  it  is  extremely  necessary  that  these  institutions  be 
oombiucd  under  some  general  State  head  whereby  the  State  itself 
will  direct  the  policy  of  the  institutions  and  the  expenditure  of 
tlio  moneys  appropriated. 


J 


51 

The  boards  of  managers  connected  with  these  institutions  gen- 
erally look  upon  the  institutions  as  being  local  in  character,  and 
are  continually  demanding  enormous  sums  of  money  for  new 
buildings,  improvements  and  betterments,  and  additions  of  land 
thereto.  The  cost  of  housing  the  inmates  under  present  condi- 
tions is  enormous,  and  the  cost  of  maintenance  is  also  very  high. 
With  a  State  policy  securing  entire  supervision  and  control,  we 
thoroughly  believe  that  great  savings  can  be  made  and  that  prob- 
lems effecting  economies  and  efficiency  can  be  satisfactorily  solved. 

At  present  while  the  State  Lunacy  Commission  has  a  pur- 
chasino-  board,  vet  the  evidence  before  us  showed  that  at  least  25 
per  cent,  of  the  supplies  were  bought  by  the  stewards  of  the  local 
institutions  in  the  local  markets,  with  no  direct  State  supervision 
over  the  same.  This  has  resulted  in  many  abuses  in  the  past,  and 
the  practice  is  to  be  condemned. 

The  State  charitable  institutions  in  some  way  ought  to  be  con- 
solidated. There  are  entirely  too  many  separate  State  institu- 
tions in  which  a  smair  number  of  inmates  are  cared  for  at  a  large 
per  capita  cost. 

New  Hospitals  Required. 

The  State  Hospital  Commission  reported  to  us  that  the  State 
hospitals  for  the  insane  are  greatly  overcrowded,  and  we  have  had 
an  investigatiim  made  and  find  that  these  facts  stated  to  us  are 
correct.  It  is  absolutely  necessary  that  in  the  immediate  future 
the  State  should  build  at  least  one  or  possibly  two  large  institu- 
tions for  the  care  of  the  insane.  At  present  it  is  contemplated 
using  the  site  at  Creedmoor,  formerly  used  by  the  State  as  a  rifle 
range,  which  has  been  transferred  over  to  the  State  Hospital 
Commission.  In  our  opinion  it  would  be  absolutely  unwise  to  use 
this  site  for  such  purpose.  The  site  in  question  is  a  long,  narrow 
strip  with  a  wide  parkway  through  the  center,  and  does  not  lend 
itself  to  the  erection  of  buildings  in  suitable  groups.  The  land 
itself  is  of  large  value  and  could  be  readily  sold,  and  if  the  State 
desired  to  buy  land  adjacent,  the  price  would  be  practically  pro- 
hibitive. In  our  opinion  this  land  should  be  sold,  and  a  large 
tract  of  land  purchased  at  some  other  place  suitable  for  the 
erection  of  a  large  hospital.  There  are  at  present  confined  in  the 
State  hospitals  a  great  number  of  foreign  insane,  who  are  not  able 
to  speak  the  English  language,  and  an  institution  should  be  pro- 


52 

vidcd  where  they  could  be  grouped  according  to  nationality  and 
taken  care  of  by  people  who  speak  their  own  language.  If  this 
were  done  it  would  relieve  the  congestion  in  the  other  State  hos- 
pitals, and  we  are  of  the  opinion  that  this  matter  should  be  given 
careful  consideration  before  any  new  State  hospitals  for  the  insane 
are  built. 

Mandatory  Increases  in  Wages. 

We  also  desire  to  call  your  attention  to  legislation  that  was 
passed  in  the  year  1912  providing  for  an  increase  in  the  wages 
of  the  employees  in  the  State  hospitals.  This  statute  is  manda- 
tory and  only  applies  to  State  hospitals,  and  if  it  is  to  be  con- 
tinued will  result  in  a  demand  on  the  part  of  all  the  institutions 
for  like  increases  in  salaries.  The  increases  in  the  wages  of  em- 
ployees in  the  State  hospitals,  becoming  etfective  April  1,  1913, 
will  amount  to  the  sum  of  nearly  $205,000  annually.  The  State 
Board  of  Charities  are  now  insisting  that  its  employees  should 
be  paid  the  same  rate  of  wages  that  is  paid  in  the  State  hospitals, 
and  that  if  the  wages  are  not  raised  they  will  not  be  able  to  keep 
their  trained  employees, 

DEPARTMENT  OF  PUBLIC  BUILDINGS. 

The  appropriations  for  the  year  1912  were: 

Appropriation  Bill    $253,350  00 

Supply  Bill   97,130  58 


Total $350,480  58 


The  amounts  asked  for  in  1913  were: 

Appropriation  Bill    $253,350  00 

Supply  Bill   17,800  00 

Total - $271,150  00 


We  have  gone  carefully  over  these  items  and  they  include  for 
this  year  the  cost  of  operating  the  new  poAver  house  and  electric 
light  plant  recently  constructed  by  the  State,  and  we  are  of  the 
opinion  that  the  sum  of  $255,130  should  be  allowed  for  the 
year  1913,  which  is  a  reduction  over  1912  of  $95,350.58. 


53 


CONSERVATION  COMMISSION. 

At  present  this  Department  is  organized  with  three  Commis- 
sioners having  a  salary  of  $10,000  each;  three  deputy  commis- 
sioners at  a  salary  of  $3,500  each;  three  confidential  secretaries 
to  tlie  commissioners  at  a  salary  of  $2,100  each;  three  confidential 
stenographers  at  a  salary  of  $1,500  each;  a  counsel  at  a  salary  of 
$7,000 ;  an  assistant  counsel  at  a  salary  of  $5,000 ;  a  secretary  at 
a  salary  of  $5,000 ;  an  assistant  secretary  at  a  salary  of  $3,000 ; 
a  publicity  agent  at  a  salary  of  $4,200,  and  an  assistant  publicity 
agent  at  a  salary  of  $1,800,  amounting  in  all  to  $77,300,  besides 
a  full  corps  of  subordinate  employees. 

This  Commission  contains  three  divisions,  namely,  a  fish  and 
game  division,  a  forest  division,  and  an  inland  waters  division. 
Each  of  the  separate  divisions  has  various  bureaus.  In  our 
opinion  this  department  has  too  large  an  overhead  charge,  and  a 
saving  of  at  least  $45,000  a  year  could  be  made  by  providing  for 
a  single-headed  commission,  with  one  deputy  in  charge  of  each 
division,  a  general  secretary  for  the  entire  Commission,  and  an 
advisory  counsel  to  the  Commission,  and  we  recommend  legisla- 
tion to  this  effect. 

We  have  prepared  and  herewith  submit  a  bill  to  reorganize  this 
Commission  on  this  basis. 

The  division  of  inland  waters  has  a  very  large  engineering 
force,  and  has  been  expending  a  large  amount  of  money  in  the 
examination  of  water  powers,  and  advocating  that  the  State 
develop  the  energy  of  these  water  powers.  Until  this  is  adopted 
as  a  State  policy,  the  Department  is  not  justified,  in  our  opinion, 
in  large  expenditures,  and  we  recommend  that  this  work  be  con- 
ducted more  economically  until  the  policy  of  the  State  is  deter- 
mined. 

The  Conservation  Commission  at  present  has  jurisdiction  over 
the  marine  fisheries  of  the  State,  and  the  entire  work  connected 
with  these  industries  is  located  in  and  around  the  city  of  New 
York.  A  large  delegation  of  oyster  growers  appeared  before  our 
Committee  and  complained  that  their  industry  had  suffered  be- 
cause they  could  not  get  prompt  attention  to  their  needs,  par- 
ticularly in  regard  to  the  inspection  of  their  beds  and  the  sur- 
veying and  establishing  of  boundary  lines.  We  inquired  into 
the  situation  and  found  that  this  inland  fisheries  bureau  receives 


54 

a  suflR'icnt  revenue  from  fees  to  support  a  separate  department, 
that  the  oyster  industry  amounts  now  to  a  business  of  about  ten 
millions  of  dollars  a  year,  and  that  the  New  York  oyster  growers 
are  dis(n"iminated  against  in  the  market  because  they  cannot  at 
present  furnish  certificates  as  to  the  purity  and  liealthfulness  of 
their  product.  We  believe  that  a  very  large  business  industry  will 
be  best  served  by  separating  marine  fisheries  from  the  Conserva- 
tion Department,  and  we  have  recommended  legislation  to  accom- 
plish this  purpose. 

FIRE  MARSHAL. 

The  appropriations  for  the  year  1912  were: 
Appropriation  bill $119,020  00 

Amount  asked  for  in  101:3: 

Appropriation  bill   $155,720  00 

Supply  bill 16,104  08 

Total $171,824  08 


In  our  opinion,  after  going  carefully  over  these  figures,  we 
believe  that  the  sum  of  $109,020  will  be  sufficient  to  maintain 
this  Department  for  the  coming  year,  a  saving  from  1912  of 
$10,000.  We  particularly  desire  to  call  the  attention  of  the 
Legislature  to  the  fact  that  the  Fire  Marshal  has  made,  we  believe, 
very  radical  recommendations  in  regard  to  expenditures  of  money 
by  State  institutions,  and  which,  if  carried  out,  will  call  for  the 
expenditure  of  a  very  large  sum  of  money.  The  different  institu- 
tions are  complaining  to  us  that  these  requests  are  unfair  and  the 
amounts  should  not  be  allowed,  and  we  suggest  that  some  careful 
study  should  be  made  of  this  situation  before  such  large  amounts 
of  moneys  are  expended. 

RESERVATIONS,  PARKS  AND  BUILDINGS. 

The  State  of  New  York  is  now  the  owner  of  a  large  number  of 
parks,  reservations,  buildings,  cottages,  mansions  and  monuments. 
Some  of  these  reservations  and  parks  are  under  State  boards,  and 
some  under  private  control.  The  names  of  these  institutions  are 
as  follows : 

Niagara  Reservation,  Saratoga  Reservation,  Stony  Point  Reser- 
vation, Watkins  Glen  Reservation,  Fire  Island  Park,  Lake  George 
Hattle  Ground  Park,  Grant  Cottage,  Schuyler  Mansion,  Sir  Wil- 


55 

liam  Johnson  ]\ransion,  Sarato£^'a  jMonnment,  Sullivan  Monumout, 
Washington  Headquarters,  Phillipsc  J\Ianor  House,  Clinton 
House,  John  Brown  Jlomestead,  Crown  Point  Reservation, 
Senate  House  (at  Kingston). 

It  was  with  exceeding  difficulty  that  your  Committee  were  able 
to  determine  the  different  boards  and  bodies  having  control  of  all 
these  different  properties,  and  as  long  as  the  State  is  called  upon 
to  provide  funds  for  their  care  and  preservation,  they  ought  to  be 
all  under  State  management.  In  our  opinion,  the  proper  depart- 
ment to  have  charge  of  these  properties  is  the  Conservation  Com- 
mission, in  connection  with  other  State  lands  over  which  it  now 
has  jurisdiction,  and  we  recommend  legislation  to  that  effect. 

STATE  ENGINEER  AND    SURVEYOR. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill   $36,990  00 

Supply  bill 20,115  00 

Total $57,105  00 

Amount  asked  for  in  1913: 

Appropriation  bill   $37,345  00 

Supply  bill 23,500  00 

Total $60,845  00 


The  principal  cost  of  the  work  in  the  office  of  the  Engineer  and 
Surveyor  is  in  connection  with  the  new  barge  canal,  which  is 
paid  for  out  of  the  bond  issue,  and  so  far  as  the  appropriation  and 
supply  bills  are  concerned,  we  believe  that  the  sum  of  $55,845 
will  be  sufficient  to  maintain  this  Department  for  the  coming  year, 
a  saving  from  1912  of  $1,260. 

STATE   ARCHITECT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill   $120,890  00 

Supply  bill 'S',500  00 

Total $128,390  00 


56 

Amounts  asked  for  in  1913: 

Appropriation  bill   $173,080  00 

Supply  bill 12,800  00 

Total $185,880  00 


The  Department  of  the  State  Architect  was  one  of  the  first 
taken  up  for  examination  by  yonr  Committee,  and  this  examina- 
tion necessarily  included  the  examination  of  the  contracts  for  re- 
building that  portion  of  the  State  Capitol  which  was  destroyed  by 
fire.  As  soon  as  we  began  the  inquiry  it  was  apparent  to  us  that 
the  whole  method  of  the  administration  of  this  office  and  of  these 
contracts  needed  a  most  careful  examination  by  experts  who  had 
the  technical  knowledge  of  building,  to  properly  appraise  the  value 
of  the  work  that  was  being  done  and  the  value  of  the  Avork  that 
had  been  done.  From  our  superficial  examination  in  the  beginning 
it  appeared  that  the  methods  of  conducting  this  work  were  at 
least  open  to  question.  We,  therefore,  suggested  to  you  that  the 
work  upon  the  capitol  be  suspended  and  that  an  expert  committee 
be  appointed  to  examine.  As  a  result  of  our  suggestion  you  ap- 
pointed a  committee  of  architects,  and  the  disclosures  as  to  con- 
ditions resulted  in  your  removal  of  the  State  Architect,  justify- 
ing our  apprehension,  and  the  work  of  examination  into  the  con- 
tracts is  still  in  progress. 

After  we  received  the  report  of  this  expert  committee,  which 
justified  our  opinion  that  there  had  been  grave  abuses  connected 
with  the  administration,  we  resumed  the  taking  of  testimony, 
which  disclosed  the  fact  that  there  were  certain  circumstances 
connected  with  the  award  and  administration  of  these  contracts 
which  caused  us  to  report  to  you  that  the  Attorney-General  should 
be  requested  to  take  the  whole  matter  under  advisement  in  order 
to  protect  the  interests  of  the  State.  We  believe  that  the  facts 
disclosed  show  a  condition  so  suspicious  that  this  examination 
should  continue,  either  by  the  Attorney-General  or  a  special  com- 
missioner appointed,  until  the  entire  truth  relating  to  the  matters 
we  have  disclosed  be  ascertained  and  such  action  taken  as  will  not 
only  protect  the  interests  of  the  State,  but,  if  necessary,  punish 
those  who  have  been  guilty  of  wrongdoing. 

Your  Committee  is  firmly  of  the  opinion  that  open  or  percent- 
age contracts  on  State  work  are  always  dangerous  and  an  invita- 


57 

tion  to  extravagance.  It  was  proLaWy  necessary  to  begin  this 
work  on  a  percentage  basis  immediately  after  the  fire,  particularly 
the  clearing  away  of  the  debris  and  the  cleaning  and  replacing  of 
certain  burnt  portions  of  the  stone  work,  but  we  are  of  the  opinion 
that  this  method  should  have  been  discontinued  before  now,  and 
that  if  it  is  possible,  legally,  the  percentage  contracts  should  be 
terminated  at  once,  estimates  made  of  the  amount  of  work  still 
to  be  done,  and  that  the  State  secure  competitive  bids  and  let  tlie 
remainder  of  the  work  on  the  basis  of  the  proposals  received  to 
the  lowest  bidder. 

We  believe  that  the  sum  of  $113,910  will  be  sufficient  to  main- 
tain this  Department  for  the  coming  year  in  the  regular  appro- 
priation bill.  The  last  incumbent  of  the  office  depleted  the  funds 
available  for  this  year  to  a  large  extent,  and  it  will  be  necessary 
to  ask  for  additional  moneys  in  the  supply  bill  on  that  account. 

PUBLIC  WORKS  DEPARTMENT. 

The  cost  of  maintaining  this  Department  in  connection  with  the 
operation  of  canals  in  the  year  1012  was: 

Appropriation  Bill $978,062  00 

Supply  Bill    68,500  00 

Special  bills   240,000  00 

Total $1,286,562  00 


Besides  these  amounts,  there  was  special  work  delegated  to  this 
Department  for  which  there  was  appropriated  during  the  year 
1912,  $52,249.95. 

The  present  demands  are: 

Appropriation  Bill $1,056,862  00 

Supply  Bill    20,000  00 

Special  bills 185.000  00 

Total $1,261,862  00 


We  believe  that  the  sum  of  $1,060,109  is  sufficient  to  maintain 
this  Department  for  the  coming  year,  an  increase  over  1912  of 
$13,547. 

3 


63 


BANKING  DEPARTMENT. 
The  appropriations  for  the  jciir  1012  were: 

Appropriation  Bill $214,950  00 

Supply  Bill   28,153  33 

Total $243,103  33 

Amounts  asl^cd  for  in  1913: 
Appropriation  Bill $221,590  00 

Total $221,590  00 


We  believe  that  the  sum  of  $216,090  will  be  sufficient  to  main- 
tain this  Department  for  the  coming  year,  a  saving  from  1912  of 
$27,013.33. 

The  entire  expense  of  the  Banking  Department  is  assessed  upon 
the  banks  and  other  financial  corporations  supervised  bj  the 
Department,  and  the  annual  appropriations  by  the  Legislature, 
therefore,  merely  authorize  the  Department  to  contract  certain 
expenses,  and  do  not  represent  an  actual  outlay  of  State  funds. 

In  making  our  investigation  it  became  evident  that  the  failures 
of  so  many  State  banking  institutions  resulted  not  only  from  re- 
missness in  the  execution  of  law  by  past  administrations,  but  also 
from  defects  in  the  law  itself.  It  also  appears  that,  while  efforts 
had  been  made  from  time  to  time  to  remedy  these  defects,  the 
results  of  this  desultory  legislation  was  not  satisfactory,  and  many 
defects  still  exist. 

In  order  that  the  State  of  ISTew  York  may  have  a  clear,  concise 
and  comprehensive  banking  law  adapted  to  present  conditions  of 
finance,  we  recommend  that  the  Superintendent  of  Banks  be 
authorized  to  appoint  a  commission  of  five  or  more  persons  having 
a  technical  knowledge  of  banking  law  and  a  practical  knowledge 
of  present  banking  methods  to  revise  the  banking  laws  and  submit 
to  the  next  Legislature  a  complete  and.  comprehensive  statute 
which  will  eliminate  the  abuses  that  have  existed  in  the  past  and 
prevent  any  recurrence  of  such  conditions  as  led  to  the  failure  of 
the  Union  Bank  of  Brooklyn  and  other  institutions.  "While  the 
commissioners  themselves  should  serve  without  pay,  we  recom- 
mend that  the  sum  of  $50,000  be  appropriated  for  the  purpose  of 
paying  the  expenses  of  such  commission  and  the  employment  of 
expert  assistants.  If  this  recommendation  is  adopted,  we  believe 
that  the  Banking  Law  of  the  State  of  ISTew  York  will  hereafter 


69 

serve  as  a  model,  not  only  for  the  future  laws  of  other  States,  but 
to  some  extent  for  the  National  government. 

There  are,  however,  some  defects  in  the  present  Banking  Law 
and  in  the  provisions  of  the  Penal  Law  relating  to  the  conduct  of 
the  officers  and  directors  of  such  institutions  which  are  so  evident 
that  the  present  Legislature  should,  in  our  judgment,  take  imme- 
diate action  for  the  protection  of  the  citizens  of  the  State. 

At  our  request,  the  Superintendent  of  Banks  has  caused  to  be 
prepared  by  his  legal  adviser  the  following  legislation,  which  we 
recommend  for  immediate  passage: 

1.  An  act  to  create  a  commission  to  revise  the  Banking  Law 
and  making  an  appropriation  therefor. 

2.  An  act  to  amend  the  Banking  Law,  in  relation  to  books  and 
accounts  of  corporations  organized  under  it. 

3.  An  act  to  amend  the  Banking  Law,  in  relation  to  the  powers 
of  the  Superintendent  of  Banks. 

4.  An  act  to  amend  the  Banking  Law,  in  relation  to  loans  by  a 
corporation  organized  under  the  Banking  Law  to  its  incorporators 
or  shareholders  to  enable  them  to  pay  for,  hold  or  purchase  the 
shares  of  such  corporation. 

5.  An  act  to  amend  the  Banking  Law,  in  relation  to  examina- 
tions by  boards  of  directors  of  banks  and  trust  companies  and 
reports  thereof. 

6.  An  act  to  amend  the  Banking  Law,  in  relation  to  the  pur- 
chase of  notes,  bonds  or  other  evidence  of  indebtedness  secured 
by  mortgage  or  other  lien  upon  real  estate  upon  which  there  is 
any  prior  mortgage,  lien  or  incumbrance. 

7.  An  act  to  amend  the  Penal  Law,  in  relation  to  the  miscon- 
duct of  officers,  directors,  trustees  or  employees  of  banking  cor- 
porations. 

8.  An  act  to  amend  the  Penal  Law,  in  relation  to  falsification 
of  books,  reports  or  statements  of  corporations  subject  to  the 
Banking  Law  by  an  officer,  director,  trustee,  employee  or  agent 
thereof. 

A  list  of  some  collateral  upon  which  loans  were  made  in  the 
now  defunct  Union  Bank  of  Brooklyn,  which  appears  hereafter  in 
this  report,  affords  eloquent  argument  in  behalf  of  the  passage 
of  these  laws. 


eo 


UNION  BANK   OF  BROOKLYN. 

As  a  result  of  an  appeal  luado  hy  a  committee  representing  tlie 
depositors  of  the  Union  Bank  of  Brooklyn,  and  by  the  Governor 
referred  to  the  Committee  of  Inquiry,  we  made  a  special  investi- 
gation into  the  causes  for  the  failure  of  that  institution,  into  the 
methods  of  liquidation  pursued,  and  with  reference  to  the  present 
condition  of  its  assets. 

A  hearing  was  held  in  Brooklyn  on  a  Sunday  afternoon,  which 
was  attended  hy  a  large  number  of  the  depositors,  and  another 
hearing  was  held  in  Albany,  which  was  attended  by  a  committee 
of  the  depositors,  the  State  Superintendent  of  Banks  and  many 
members  of  the  Legislature.  Hon.  Louis  Goldstein  presented  the 
complaint  of  the  depositors  and  Special  Deputy  Superintendent 
Dodge  told  of  the  efforts  of  the  Banking  Department  to  realize 
cash  upon  the  so-called  assets  in  the  defunct  banks. 

It  appeared  at  the  hearing  that  the  Union  Bank  failed  in  190Y, 
was  permitted  by  the  Banking  Department  to  reopen  in  August, 
1908,  and  was  again  closed  in  April,  1910.  At  the  time  of  the 
second  closing  the  bank  and  its  seven  branches  had  twenty  thou- 
sand depositors,  who  had  deposits  aggregating  $3,600,000.  Up 
to  the  present  time  these  depositors  have  been  unable  to  recover 
any  of  their  deposits,  because  of  the  heavy  indebtedness  of  the 
bank  when  it  closed  and  because  a  very  large  part  of  the  alleged 
assets  were  in  the  form  of  worthless  unsecured  notes. 

It  was  not  until  July,  1911,  more  than  a  year  after  the  second 
closing,  and  after  there  had  been  a  change  in  the  administration 
of  the  Banking  Department  and  the  present  Superintendent  took 
office,  that  proceedings  were  begun  against  those  responsible  for 
the  management  of  the  bank.  A  public  investigation  was  begun 
in  July,  191],  and  through  the  efforts  of  the  present  Superin- 
tendent of  Banks  and  his  deputy,  Edward  L.  Dodge,  assisted  by 
Louis  Goldstein,  counsel  for  the  association  of  depositors,  700 
witnesses  were  examined,  various  officials  and  directors  were  in- 
dicted, and  several  have  been  convicted  and  sentenced  to  prison. 

It  developed  in  this  examination  and  before  our  Committee 
that  the  Banking  Department  permitted  the  reopening  of  the  bank 
upon  a  deferred  payment  plan  —  that  is,  the  old  depositors  agreed 
to  withdraw  their  deposits  in  instalments  covering  a  period  of 
months.  To  m.ake  these  pa.^nnents  to  the  old  depositors  all  the 
bank  buildings  and  all  other  unincumbered  property  of  the  bank 


61 

was  mortgaged,  and  loans  secnrod  aggregating  $2,006,000.  New 
depositors  were  secured,  and  when  the  bank  closed  the  second  time 
it  was  found  that  most  of  the  larger  depositors  caught  in  the  first 
failure,  including  the  officers,  had  withdrawn  all  their  funds  and 
had  thus  transferred  their  loss  to  the  new  depositors  secured.  It 
is  said  that  if  the  Banking  Department  had  not  permitted  the 
reopening  of  the  bank  and  thus  allowed  no  new  liabilities  to  be 
incurred  all  the  depositors  would  have  been  paid  at  least  Y5  per 
cent,  dividends. 

Since  July,  1911,  the  Deputy  Bank  Superintendent  in  charge 
has  been  administering  the  assets,  and  has  succeeded  in  reducing 
the  liabilities  to  about  $335,000,  but  cannot  restore  any  money  to 
the  depositors  until  this  indebtedness  is  cleared  off.  Most  of  the 
assets  of  any  value  whatever  consist  of  real  estate  not  easily 
salable,  and  it  is  doubtful  if  the  depositors  ever  are  paid  much  if 
any  dividends. 

Collateral  Upon  Which  Loans  Were  Made. 

The  following  list  of  notes  now  listed  as  assets  illustrate  the 
methods  pursued  in  conducting  this  bank: 

Kote  made  by  Augustus  F.  Gardner,  for  $117,257.62.  In  the 
testimony  it  appeared  that  Gardner  was  a  clerk,  not  finan- 
cially responsible,  and  that  he  was  paid  $10  a  month  for 
signing  blank  notes,  deeds,  bonds,  mortgages  and  other  papers 
at  the  direction  of  an  officer  of  the  bank,  and  that  he  was 
neither  a  depositor,  stockholder  nor  employee  of  the  bank. 

'Note  made  by  Essex  &  Lee  Company,  for  $116,595.52,  indorsed 
by  the  Onslow-lfoore  Company  and  the  Camden  Construc- 
tion Company.  All  three  of  these  companies  were  financially 
irresponsible,  and  the  directors  were  clerks  in  the  office  of 
a  business  associate  of  an  officer  of  the  bank. 

ITote  made  by  Horace  Nichols,  for  $113,2-17.17.  Nichols  testi- 
fied that  he  was  a  day  laborer,  and  that  he  signed  papers  in 
the  same  manner  as  Gardner  did. 

Note  made  by  Charles  B.  Malloy,  for  $148,443.25,  with  bank 
stock  as  collateral.  The  balance  due  on  this  note  is  $63,- 
105.50,  which  is  uncollectible,  the  collateral  having  been  sold. 
Mr.  jMalloy  testified  that  he  got  nothing  for  signing  this  note ; 
that  the  stock  put  np  as  collateral  for  this  note  did  not  be- 
long to  him,  and  that  he  was  not  financially  responsible  to 
pay  any  part  of  the  note. 


62 

Xote  made  by  George  B.  Haggorty,  for  $125,728.10,  secured  by 
bank  stock.  The  balance  due  on  tliis  note  is  $27,228.10, 
which  is  uncollectible,  the  colhatoral  having  been  sold. 

Note  made  by  the  Rcmsen  ]3ond  and  Mortgage  Company,  for 
$50,875,  which  is  absolutely  worthless  and  uncollectible.  The 
company  claims  that  it  received  no  part  of  the  proceeds. 

Note  made  by  Kandolph  llulsart,  for  $50,000,  which  is  abso- 
lutely uncollectible  and  worthless.  Mr.  Hulsart  testified  that 
he  was  a  carpenter,  and  was  employed  by  Gilbert  Elliott,  at 
whose  request  he  signed  this  note  in  blank. 

i^ote  of  $150,000,  made  by  David  A.  Sullivan  and  indorsed  by 
several  directors,  which  amount  still  remains  unpaid.  The 
directors  in  their  testimony  stated  that  they  did  not  receive 
any  part  of  the  proceeds  of  this  note. 

Note  made  by  Thomas  D.  Tompkins,  formerly  a  director  of  the 
Union  Bank  of  Brooklyn,  for  $72,370.53.  This  note  repre- 
sents capital  stock  not  paid  for,  and  is  absolutely  worthless. 

Note  made  by  William  Strasser,  formerly  a  director  of  the  Union 
Bank  of  Brookljm,  for  $32,625.03,  which  is  absolutely  worth- 
less and  uncollectible. 

Note  made  by  James  T.  Ashley,  formerly  cashier  of  the  Union 
Bank  of  Brooklyn,  amounting  to  $14,984.47,  which  is  abso- 
lutely worthless  and  uncollectible. 

Notes  were  made  aggregating  over  $112,000  by  William  C.  Dam- 
ron,  formerly  a  director  of  the  Union  Bank  of  Brooklyn,  all 
of  which  are  worthless  and  uncollectible. 

Note  made  by  Henry  B.  Hill,  for  $24,330,  which  is  worthless  and 
uncollectible. 

Notes  made  by  Reclmitz  &  Potruch,  a  corporation,  aggregating 
$56,132.57,  which  are  worthless  and  uncollectible. 

Edward  Ti.  Thomas,  former  president  and  director  of  the  bank, 
through  loans  to  his  associates  and  to  himself,  secured  large 
sums  of  money,  and  still  owes  the  bank  $254,087. 

F.  Augustus  Heinze,  former  director  of  the  bank,  borrowed  a 
large  sum  of  money,  $246,000  of  which  still  remains  unpaid. 

Note  made  by  the  Aetna  Development  Company,  for  $10,335.50, 
without  any  security,  which  is  worthless  and  uncollectible. 

The  Metropolitan  Holding  Company  obtained  loans  aggregating 
over  $200,000,  which  up  to  the  present  time  have  been  uncol- 
lectible. This  company  was  organized  practically  as  a 
dummy  company  of  the  bank. 


63 

The  Shetland  Company  borrowed  from  the  bank  approximately 
$409,000.  Capital  stock  of  $100,000  belonged  to  the  bank. 
This  company  was  also  used  as  a  holding  company  for  the 
bank. 

David  A.  Sullivan,  the  former  president  of  the  bank,  is  liable, 
directly  and  indirectly,  on  various  loans,  as  well  as  on  his 
liability  as  a  stockholder,  to  the  extent  of  $500,000,  all  of 
which  is  absolutely  worthless  and  uncollectible. 

The  depositors  of  the  Union  Bank  of  Brooklyn  claim  that  the 
former  Superintendent  of  Banks  knew,  or  should  have  known, 
that  the  bank  was  insolvent  when  he  permitted  it  to  reopen. 

The  present  Superintendent  of  Banks  has  followed  a  policy 
of  conservation  of  the  real  estate  assets  of  the  bank  which  is 
highly  commended  by  the  depositors.  They  approve  of  the  man- 
ner of  the  liquidation  of  the  aifairs  of  the  Union  Bank  of  Brook- 
lyn as  conducted  and  administered  by  the  Superintendent  of  Banks 
and  his  deputy,  Mr.  Dodge,  in  whom  the  depositors  have  implicit 
confidence.  The  depositors  will  receive  considerably  less  than 
fifty  cents  on  the  dollar,  and  there  are  no  prospects  of  receiving 
any  dividend  for  some  time  to  come. 

The  disclosure  to  us  of  the  methods  pursued  in  wrecking  the 
Union  Bank,  the  escape  of  many  guilty  persons  on  account  of 
defects  in  the  law,  and  the  alarming  fact  that  such  banking 
methods  should  continue  unchecked  imder  State  supervision, 
caused  us  to  call  the  Superintendent  of  Banks  into  conference,  and 
with  his  assistance  and  that  of  the  counsel  for  the  unpaid  de- 
positors, we  have  had  prepared  several  amendments  to  the  Bank- 
ing Law  which  should  be  enacted  by  this  session  of  the  Legisla- 
ture, and  we  have  also  recommended  that  the  Superintendent  of 
Banks  be  empowered  to  appoint  experts  to  draft  a  new  Banking 
Law  for  presentation  to  the  next  Legislatui'e. 


64 


INSURANCE  DEPARTMENT. 

The  appropriations  for  the  year  3  912  were: 

The  appropriation  ])ill $416,840  00 

Supply  bill 22,950  00 


Total $439,Y90  00 


Amounts  asked  for  in  1913: 
Appropriation  bill $440,780  00 

Total $440,780  00 


There  were  a  number  of  unexpended  balances  in  this  Depart- 
ment aggregating  a  large  amount,  and  we  believe  that  the  sum  of 
$361,584.70  will  be  sufficient  to  maintain  this  Department  for 
the  coming  year. 

Additional  work  has  been  placed  upon  this  Department  by  the 
passage  of  new  legislation,  but  we  recommend  that  items  covering 
expenditures  necessary  to  carry  on  this  work  be  placed  in  the 
Supply  Bill  this  year  for  a  lump  sum. 

The  decrease  of  the  appropriations  this  year  recommended  by 
us  compared  with  last  year  is  $78,205.30. 

HIGHWAY  DEPARTMENT. 

The  appropriations  for  the  year  1912  were: 

Appropriation  bill $63,950  00 

Supply  bill 5,000  00 

Special  bills 4,466,222  00 

Total $4,535,172  00 


Amounts  asked  for  in  1913: 

Appropriation  bill $73,800  00 

Special  bills 4,800,000  00 

Total $4,873,800  00 


The  largest  part  of  the  expenditure  of  this  Department  is  for 
the  construction  of  new  highways  and  the  engineering  cost  in  con- 


65 

nection  therewith,  which  are  paid  for  out  of  the  bond  issues  and 
do  not  appear  in  the  appropriation  or  supply  bills,  but  only  in  the 
reports  to  the  Comptroller. 

The  next  large  items  appear  in  special  bills  and  provide  for 
repairs  and  maintenance  of  the  State  and  county  highways  and 
State  aid  to  towns,  and  the  appropriation  made  directly  by  the 
Legislature  for  the  Bureau  of  Town  Highways  in  the  appropria- 
tion bill. 

In  1912  there  was  appropriated  for  the  Bureau  of  Town  High- 
ways $63,950,  and  we  recommend  that  this  year  there  be  allowed 
in  connection  with  these  expenditures  the  sum  of  $57,950,  a  de- 
crease from  1912  of  $6,000. 

The  special  bill  last  year  for  State  aid  to  to^vns  amounted  to 
$1,669,000,  and  this  year  the  amount  asked  for  is  $1,710,000, 
which  is  an  increase  of  $4:1,000,  and  if  the  present  policy  of  the 
State  to  aid  towns  is  carried  out  it  should  be  allowed. 

In  1912  the  appropriations  for  maintenance  and  repairs  of 
State  and  county  highways  amounted  in  all  to  $2,615,040,  The 
estimate  made  this  year  by  the  Highway  Department  for  this  pur- 
pose was  $4,700,000.  Later  on  in  our  investigation  the  officers  of 
this  Department  stated  that  they  could  reduce  this  figaire  to 
$3,353,250. 

During  the  limited  time  we  have  had  to  study  this  matter,  we 
believe  that  these  figures  are  very  high  and  that  a  largo  amount  of 
repair  work  has  been  asked  for  by  local  interests  which  are  not 
necessary,  and  we  believe  that  upon  a  proper  reorganization  of  the 
bureau  of  maintenance  under  Division  Engineers  $2,000,000  will 
be  sufficient  to  take  care  of  the  maintenance  of  the  highways  for 
the  coming  year,  and  we  recommend  that  amount. 

The  investigation  of  the  matters  connected  with  the  Highway 
Department  was  as  thorough  as  our  time  would  permit,  but  w^e 
necessarily  had  to  confine  our  attention  chiefly  to  the  financial 
features,  so  as  to  intelligently  recommend  such  appropriation  of 
funds  as  are  required  to  maintain  the  roads  during  the  coming 
year.  We  were  faced  with  the  demand  for  an  appropriation,  for 
maintenance,  of  $4,700,000,  covering  repairs  to  hundreds  of  roads, 
and  in  considering  this  we  had  to  take  notice  of  the  numerous 
complaints  that  the  cost  of  such  repairs  had  been  excessive,  and 
endeavor  to  find  a  basis  upon  which  to  compute  the  proper  cost, 
and  thus'  arrive  at  our  decision  as  to  what  will  constitute  a  rea- 
sonably adequate  appropriation. 


66 

Before  our  exaniinatiou  was  half  completed  we  bad  developed 
aiid  proved  a  couditiou  that  caused  us  to  recommend  a  complete 
change  in  the  org-anization  of  the  department  and  a  reform  in  the 
methods  of  awarding  contracts,  which  recommendation  has  al- 
ready resulted  in  the  enactment  of  a  new  highway  law,  providing 
for  one  responsible  official  in  charge  instead  of  a  commission  com- 
posed of  three  uncongenial  persons,  and  further  providing  for  a 
complete  change  in  the  methods  of  contracting  for  work  and 
supervising  such  work  while  under  construction  and  repair. 

To  make  this  examination  accurate  and  complete  we  requested 
the  co-operation  of  the  Comptroller,  and  he  detailed  to  us  a  deputy 
comptroller  and  six  experts.  These  experts  worked  continually 
for  four  weeks.  They  went  over  all  the  details  of  the  original 
and  supplemental  contracts  for  repair  work,  and  carefully  tabu- 
lated the  cost  of  materials  and  transportation  of  materials  and 
the  work  of  putting  those  materials  in  place.  While  this  w^as  be- 
ing done,  other  men  were  ascertaining  through  actual  inquiry  the 
pi'oper  or  market  cost  of  all  materials  entering  into  road  constrnc- 
tion,  and  the  proj)er  cost  of  the  different  operations  entering  into 
the  construction  of  roads.  The  result  of  these  investigations 
enabled  tliem  to  find  the  true  cost  by  which  to  test  the  actual  cost 
paid  to  contractors  by  the  State. 

The  examination  covers  a  period  beginning  shortly  after  the 
formation  of  the  first  Highway  Commission  in  1909  and  ending 
on  January  1,  1913,  excepting  therefrom  the  year  1911,  during 
which  time  no  contracts  for  the  repair  of  state  highways  were 
granted.  Each  contract  and  the  accompanying  papers  were  ex- 
amined. Attached  to  each  contract  were  the  bond,  the  estimated 
cost  made  by  the  engineer,  and  the  proposed  cost  submitted  by  the 
contractor. 

With  the  original  contracts  were  also  considered  any  supple- 
mental contracts. 

After  securing  the  assistance  of  the  Comptroller,  and  agreeing 
upon  the  plan  upon  which  to  conduct  the  work,  we  called  the 
Chief  Engineer  of  the  Highway  Department  to  the  watness  stand, 
and  after  examining  him  &,nd  requiring  him  to  testify  in  regard 
to  the  method  of  making  engineers'  estimates  for  new  construc- 
tion, and  describe  the  various  units  entering  into  such  esti- 
mates, we  directed  him  to  take  the  specifications  of  all  the  repair 
contracts  which  had  been  awarded  by  the  department,  and  make 
an  engineer's  estimate  of  the  proper  cost  of  such  conlracts  on  a 


67 

basis  of  the  figures  he  would  use  for  estimating  upon  new  con- 
struction. Tlio  Chief  Engineer  hns  liad  no  supervision  over  re- 
pair work,  and  we  felt  confident  that  his  figures  could  be  relied 
upon  to  show  how  much  excess  cost  there  had  been  in  the  repair 
work  during  the  past  year. 

The  purpose  of  this  dual  examination  was  to  obtain  accurate 
information  in  regard  to  the  excess,  if  any  existed,  so  that  we 
miglit  have  a  test  to  apply  to  the  appropriation  requested  for 
maintenance  in  1913.  We  did  not  at  that  time  require  an 
analysis  of  construction  contracts,  because  the  entire  cost  of  such 
work  v/ould  be  paid  out  of  funds  derived  from  bond  sales,  and 
not  from  appropriations  to  be  made  by  the  Legislature. 

When  the  examination  was  completed,  the  analysis  prepared 
and  reports  submitted  to  us  by  both  the  Comptroller  and  the  Chief 
Engineer  of  the  Highway  Department  agreed  that  the  cost  of 
repairs  had  been  excessive,  the  general  average  being  about  twenty 
per  cent  over  what  was  established  as  a  true  economic  cost.  This 
general  average,  however,  did  not  represent  the  whole  truth,  be- 
cause there  were  many  contracts  performed  at  a  price  only  slightly 
above  our  standard,  while  there  were  many  others  which  ran  much 
above  twenty  per  cent. 

The  entire  examination  developed  the  following  situation : 


Highway  Repairs. 

The  total  number  of  contracts  examined  was  327,  which  were 
divided  as  follows: 

1909  contracts 41 

1910  contracts 37 

1912  contracts 249 


Payments  were  made  to  contractors  during  the  years  1909, 
1910  and  1912  to  the  amount  of  $2,082,062.47,  which  were  dis- 
tributed as  follows : 

In  1909 $919,588  55 

In  1910 740,378  81 

In  1912 1,016,095  11 


The   comparison   of  original   contracts   and   supplemental   con- 
tracts on  repairs  in  each  of  these  three  years  w^as  as  follows: 


68 

1909  1910  1912 

Total  of  orij^inal  con- 
tracts         $620, 240  83  $700, 009  35  $999,  502  70 

Total   of   supplemental 

contracts 293,347  72  39,709  46  10.592  41 


Totals $919.588  55  $746,378  81       $1,016.095   11 


The  average  cost  per  mile  was: 

1909 $4,820  58 

1910 4,442  33 

1912 1,139  G7 


Our  experts  found  in  analyzing  the  contracts  that  it  was  neces- 
sary to  compare  them  as  a  whole  to  get  the  accurate  inci*eases  and 
decreases  in  the  cost  Items  which  had  been  combined  in  11)09 
were  separated  in  1912,  and  thus  the  comparison  upon  these 
separate  items  was  destroyed.  It  was  possible,  however,  to  set  up 
with  certainty  a  true  comparison  between  certain  items  entering 
into  all  the  contracts,  and  as  an  example  of  this  work  we  present 
the  following  comparison  of  some  of  these  items,  the  figures  given 
being  the  excess  cost  of  these  materials  in  all  of  the  contracts  in 
the  given  year: 

1909  1910  1912 

Excess  cost  of  stone..       $123,599  90  $119,720  25  $92,079  15 

Excess  cost  of  oil 42,122  09  33,734  56  51,512  91 

Excess  cost  of  earth  ex- 
cavation                    790  90  8, 949  64  6, 340  87 


Total    excess    cost 

on   these   items.        $166,512  89  $162,410  45  $150,532  93 


The  total  expenditure  of  money  by  the  maintenance  bureau  of 
the  Highway  Department,  including  expenses  of  administration, 
work  done  by  the  Department,  materials  purchased  by  the  Depart- 
ment and  payments  to  contractors,  during  the  years  1910,  1911 
and  1912,  was  as  follows: 

1910  1911  1912 
DEPARTMENT  EXPENSE: 

Improvements $22,32132  $8,739  20  $11,718  14 

Resurfacing 1,078,47151  312,448  84     

Engineering     and     in- 
spection     61,335  64  21,019  15  175,640  92 

Labor 5,509  94  11,634  84  22,598  34 

Materials 00,  052  73  93,  005  83  147,  450  74 

Patrol    205,427  81  258, 307  34  425. 048  78 

Tools   and  plant 18,080  91  7,311  08  17,332  79 

Guard    rail     71,416  00  6,338  38  11,499  90 

Concrete 3.940  53  9.850  92  0,501  48 

Oil 103.238  24  83,382  01  397,204  93 


69 

DEPAR'raiKNT  EXPENSES  —  Continued: 

Sweeping  and  applying                1910  1911  1912 

oil $107. 12S  3fi  $71,550  93      

Material  for  covering.         228,187  06  86,93126      

Covering   oil    9,364  81  8,73177      

Cleaning  and  trimming            12,59166  13,529  33      

Paving 1,026  61  487  80      

Extraordinary  repairs.              3,891  86  277  00      

Miscellaneous 4, 712  16  20,853  33  $182  00 


T(^tals $2,122,763  21       $1,015,065  01       $1,215,298  02 

PAYMENTS  TO  CON- 
TRACTORS   746,378  81      1,016,095   11 


Grand  totals $2,869,142  02       $1,015,065  01       $2,231.393   13 


The  DciDartment  of  Highways  was  organized  in  1909  and  the 
records  were  not  sufficiently  systematized  to  enable  us  to  dis- 
tribute the  various  items  of  cost  entering  into  the  repair  work  in 
the  same  manner  as  we  have  done  v/ith  the  other  years.  The 
total  expenditures  of  the  Department  in  1909  were  as  follows: 

Eor   Department  expenses $925,166  92 

Amount  paid  to  contractors 919,588  55 


Total $1,8M,Y55  47 


'No  new  contracts  for  repair  work  were  let  in  1911;  most  of 
the  work  was  done  by  the  Department  itself. 

During  the  period  examined  1,250  miles  of  highways  were  re- 
paired as  follows: 

In  1909 191 

In  1910 168 

In  1912 891 


The  maintenance  bureau  of  the  Highway  Department  appears 
to  have  always  worked  on  unscientific  principles.  Everything 
seems  to  have  been  done  in  a  burry  and  without  sufficient 
preparation,  even  when  a  wrong  system  has  not  been  deliberately 
adopted.  It  appears  that  examination  of  roads  intended  to  be  re- 
paired has  been  made  in  the  winter,  with  snow  upon  the  ground, 
which  made  it  impossible  to  get  any  accurate  knowledge  of  the 
character  of  the  soil,  and  the  specifications  dra^vn  upon  such  in- 
formation have  necessarily  been  faulty.  ISTo  systematic  way  of 
getting  accurate  geological  information,  to  guide  the  engineers  in 
making  their  estimates,  seems  to  have  been  established.  The  work 
of  making  estimates  was  hastily  done  in  the  spring  so  as  to  have 
the  contracts  ready  for  letting  as  soon  as  the  weather  sufficiently 


TO 

moderated  to  pcrinit  outdoor  work,  nnd  this  practice  resulted  in 
changes  in  specifications,  many  suppk!mcntal  contracts  and  a 
great  deal  of  waste  on  almost  every  piece  of  work. 

The  most  vicious  feature  of  the  method  of  letting  contracts  ap- 
pears to  have  been  the  practice  of  awarding  contracts  for  repairs 
without  asking  for  competitive  bids. 

Three  systems  were  followed  in  securing  proposals,  namely: 
Advertising  in  newspapers  for  competitive  bids ;  inviting  certain 
contractors  in  a  locality,  who  were  knoAvn  to  have  plants,  to  pri- 
vately compete;  and  assigning  certain  sections  of  repair  work  to 
such  contractors  as  were  selected  by  the  official  in  charge. 

During  tlie  year  1912  work  amounting  to  $132,667.59  was  ad- 
vertised in  newspapers  for  competitive  bidding;  work  amounting 
to  $187,036.13  was  awarded  to  contractors  after  private  competi- 
tive bidding;  and  work  amounting  to  $908,947.68  was  assigned  to 
contractors  chosen  by  the  officials  of  the  Department  without  com- 
petitive bidding. 

It  is  true  that  the  average  cost  per  mile  was  lower  in  1912 
than  in  the  preceding  years,  but  this  system  is  so  vicious,  in  our 
opinion,  that  it  merits  unqualified  condemnation,  and  we  have 
recommended  that  in  future  no  contracts  of  any  magnitude  be 
awarded  without  competitive  bidding. 

This  system  of  non-competitive  contracts  was  responsible,  in 
our  judgment,  for  the  high  prices  paid  for  materials  used  in  re- 
pair work. 

Our  examiners  disclosed  that  manipulation  of  oil  was  paid  for 
at  rates  varying  from  five  to  ten  cents  per  gallon,  the  oil  being 
furnished  by  the  Department,  and  we  are  advised  that  five  ccjits 
is  an  extremely  liberal  price. 

Broken  stone  was  paid  for  at  prices  varying  from  $1.20  to 
$8.25  per  cubic  yard. 

Rolling  charges  varied  from  $10  and  $15  per  day  to  $10,  $15 
and  $40  per  mile.  The  rate  allowed  by  law  for  rolling  town 
roads  is  $10  per  day.  At  $10  per  mile  a  "roller  could  earn  $80 
per  day. 

These  are  but  three  instances  of  excessive  charges  allowed. 

The  hasty  preparation  of  specifications  has  resulted  in  extra 
contracts  and  supplemental  contracts,  and  we  have  no  doubt  that 
many  of  these  supplemental  contracts  were  improperly  awarded. 
We  do  not  feel  justified,  however,  in  condemning  unqualifiedly 
the  supplemental  contract  system.  Under  the  unit  form  of  bid- 
ding —  that  is,  wdien  the  proposal  of  the  contractor  is  based  upon 
items,  the  quantities  of  which  are  estimated  by  the  engineers  —  it 


71 

will  always  be  necessary  on  final  settlement  to  readjust  the  quan- 
tities of  these  items  and  it  may  be  appropriate  to  issue  a  supple- 
mental contract  therefor.  This  form  of  supplemental  contract, 
however,  is  legitimate  because  it  does  not  change  the  competitive 
character  of  the  bid,  if  the  engineer's  work  has  been  efficiently 
done.  There  may  also,  from  time  to  time,  arise  contingencies 
which  even  an  accurate  survey  by  the  engineer  could  not  locate, 
such  as  a  soft  spot  which  needs  to  be  reinforced.  These,  how- 
ever, appear  to  us  to  be  the  only  legitimate  reasons  for  supple- 
mental contracts.  All  others  appear  to  us  to  be  due  to  incom- 
petent engineering  or  official  favoritism. 

The  result  of  our  investigation  into  the  maintenance  and  re- 
pair bureau  of  the  Highway  Department  induces  us  to  recommend 
to  the  Legislature  that  less  than  one-half  the  sum  requested  to  be 
appropriated  this  year  be  provided,  so  as  to  compel  the  Depart- 
ment to  be  administered  upon  more  efficient  lines. 

New  Construction. 

The  excessive  cost  of  maintenance  and  repair  of  the  highways 
is,  in  part,  due,  in  our  opinion,  to  faulty  and  inadequate  methods 
of  construction  employed  in  the  beginning  of  the  good  roads'  de- 
velopment. These  roads  were  originally  constructed  at  great 
cost  to  the  State,  but  the  element  of  supplemental  contracts  entered 
largely  into  that  cost.  These  supplemental  contracts  were  caused 
partly  through  faulty  specifications,  such  as  providing  two  inch 
foundation  on  soft  soil,  experimenting  with  patented  materials, 
and  a  general  lack  of  systematic  knowledge  regarding  both  the 
character  of  traffic  required  to  be  borne  by  these  roads  and  the 
character  of  the  soil  upon  which  they  were  constructed. 

In  some  of  these  old  construction  contracts,  dating  back  to 
1909  as  well  as  continuing  to  the  present  time,  we  found  supple- 
mental agreements  that  completely  changed  the  character  of  the 
construction  and  destroyed  the  competitive  features  of  the  con- 
tract. 

We  found  one  original  contract  for  a  road  in  Erie  county,  let 
in  1909  on  competitive  bidding  for  $16,000,  the  final  payments 
to  the  contractor  for  the  constniction  of  which  was  $41,676.81. 

We  found  that  several  roads,  constructed  under  such  imper- 
fect specifications,  went  to  pieces  wdthin  a  few  years  and  required 
reconstrnction  out  of  the  maintenance  and  repair  fund.  An  ex- 
ample of  this  can  be  found  in  a  road  in  Warren  county  that  was 
built  in  1908  at  a  cost  of  about  $50,000;  repaired  in  1910  at  a 


72 

cost  of  $5,000,  and  reconstructed  under  guise  of  repairs  in  1912 
at  a  cost  of  $50,000. 

Wo  recommend  that  no  further  new  contracts  for  construction 
be  awarded  unless  the  plans  for  such  construction  are  completely 
revised,  so  as  to  provide  a  form  of  construction  suited  to  the  char- 
acter of  the  soil  and  the  volume  of  traflic  which  the  road  will  be 
called  upon  to  sustain.  And  we  further  recommend  that  only 
such  supplemental  contracts  as  are  required  to  complete  the  ad- 
justment of  the  contract  when  the  work  is  finished,  or  to  provide 
for  small  emergencies,  be  tolerated. 

Conclusion. 

The  investigation  of  the  Highway  Department  we  regard  as 
the  most  difficult,  and  at  the  same  time  one  of  the  most  important, 
problems  we  had  to  deal  with.  We  felt  it  to  be  absolutely  neces- 
sary to  establish  such  facts  as  will  lead  to  the  inauguration  of 
a  system  of  highway  construction  that  will  secure  for  the  peo2:>le 
of  the  State  the  best  roads  that  can  be  built,  and  surround  the 
expenditure  of  the  money  to  be  derived  from  the  new  bond  issue 
of  $50,000,000  with  such  safeguards  as  to  guarantee  absolute 
honesty  and  efficiency. 

We  received  a  great  number  of  complaints  from  citizens  in  all 
parts  of  the  State,  regarding  new  highways  that  had  been  built 
and  repairs  that  were  supposed  to  have  been  made.  Each  of 
these  complaints  was  referred  to  the  Department  of  Highways 
and  the  officials  were  required  to  make  an  explanation^  under  oath, 
upon  the  witness  stand. 

We  invited  the  testimony  of  experts,  issued  a  public  appeal  for 
the  assistance  of  citizens,  took  notice  of  newspaper  complaints, 
and  our  public  hearings  on  highway  matters  occupied  about  two 
weeks. 

We  worked  under  the  necessity  of  making  a  report  to  the  Legis- 
lature in  time  so  that  funds  can  be  appropriated  to  begin  the 
work  of  repair  as  soon  as  the  weather  will  permit,  and  on  this 
account  we  have  tried  to  concentrate  our  attention  chiefly  upon  the 
financial  problem,  and  upon  the  methods  of  administration,  rather 
than  seeking  to  discover  specific  instances  of  wrongdoing.  It  is 
possible  that  there  are  specific  instances  of  wrongdoing  to  be  dis- 
covered, but  we  feel  that  the  work  we  have  performed  is  of  more 
enduring  value.  We,  therefore,  have  suggested  that  these  mat- 
ters be  referred  for  examination  to  another  agency,  and  we  under- 
stand that  this  suggestion  has  been  adopted. 


73 


LEGISLATIVE  AND  JUDICIAL. 

We  have  given  no  consideration  whatever  to  the  appropriations 
desired  in  connection  with  these  two  branches  of  the  state  govern- 
ment, as  we  have  no  jurisdiction  over  them,  they  being  co-ordinate 
branches  of  the  government. 

MISCELLANEOUS. 

All  through  the  appropriation  and  supply  bills  are  a  number  of 
miscellaneous  items  covering  State  lands,  reservations,  parks  and 
buildings,  and  we  have  carefully  gone  over  the  items  asked  for  in 
connection  with  these  matters  and  have  made  our  recommenda- 
tions in  connection  therewith  in  the  appropriation  bill  and  supply 
bill.  We  do  not  deem  it  necessary  to  encumber  this  report,  with 
recommendations  in  connection  therewith,  and  full  information 
as  to  our  action  can  be  had  by  examining  these  bills. 


STATE    INSTITUTIONS    AND    SPECIAL    BILLS    AND 
APPROPRIATIONS    CONNECTED    THEREWITH. 

In  the  budget  submitted  to  the  Comptroller  appropriations  are 
asked  for  buildings  and  additions  to  existing  buildings  to  the 
extent  of  the  sum  of  about  $10,000,000,  and  these  divided  into 
departments  are  as  follows: 

Health  officer,  port  of  'New  York $1,953,000  00 

Prisons 1,807,200  00 

State  hospitals   3,740,625  00 

Charitable  institutions    2,007,224  50 

Long  Island  Agricultural  School 704,500  00 


There  are  also  now  before  the  Legislature,  bills  for  a  number 
of  agricultural  schools  in  different  sections  of  the  State  and  a 
large  number  of  demands  for  other  public  buildings,  amounting  to 
several  million  dollars  more. 

During  the  past  few  years  the  State  has,  by  legislation,  in  a 
way,  committed  itself  to  the  following  new  institutions: 


74 

First. —  State  Industrial*  Farm  Colony  for  Tramps. 

Bv  chapter  530  of  the  Laws  of  1912  an  appropriation  of 
$100,000  was  made  by  the  Legislature,  and  the  board  of  mana- 
gers of  this  institution  was  authorized  to  enter  into  contracts  not 
exceeding  in  the  aggregate  $500,000,  for  the  construction  of  build- 
ings and  the  purchase  of  a  site.  The  total  cost  of  this  institution 
will  be  over  $1,000,000. 

This  is  the  first  institution  of  tlio  kind  to  be  attempted  in  the 
L'"nited  States,  and  if  the  scheme  is  carried  out  it  will  commit  the 
State,  not  only  to  a  large  expenditure  for  the  construction  of 
buildings,  but  to  a  large  maintenance  cost  in  connection  there- 
with. We  believe  it  is  unwise  for  this  State  to  take  the  initiative 
in  committing  itself  to  such  an  enormous  expense  in  connection 
with  the  handling  of  this  class  of  people,  and  that  this  project 
ought  to  be  abandoned  and  the  law  repealed. 

Second. —  Prison  Farm  for  Women. 

This  institution  has  purchased  a  large  tract  of  land,  and  the 
plans  call  for  the  expenditure  of  $3,000,000.  The  object,  as 
stated  in  the  act,  is  to  provide  an  institution  to  which  women  over 
thirty  years  of  age,  who  have  been  convicted  five  times  in  the  last 
two  years,  should  be  committed. 

While  the  purpose  of  providing  some  place  for  these  unfortu- 
nate women  is  worthy  of  consideration,  yet  we  do  not  believe  that 
the  plan  proposed  of  putting  them  upon  a  farm,  and  especially  the 
plan  proposed  of  such  an  enormous  expenditure  for  the  housing 
of  the  number  of  inmates  who  may  be  committed,  justifies  the 
State  in  going  on  with  this  enterprise  without  further  careful 
investigation. 

Third.—  Letchworth  Village. 

The  purpose  of  this  institution  is  undoubtedly  an  admirable 
one,  to  build  near  the  city  of  New  rork,  at  a  cost  of  about 
$3,000,000,  a  large  institution  for  the  unfortunates  who  are  now 
committed  to  up-State  places.  A  large  amount  of  money  has 
already  been  appropriated,  but  has  not  been  expended,  and  this 
institution  is  being  built  upon  the  cottage  plan  of  caring  for 
inmates.  While  this  plan  may  have  certain  good  features,  yet 
the  investigation  that  we  have  made  leads  us  to  believe  that  the 
initial  cost  of  building  on  the  cottage  plan  is  treble  that  under 


75 

which  similar  institutions  have  been  constructed  in  the  past,  ami 
that  the  cost  per  capita  of  maintenance  will  also  be  very  hiii;!!. 
We  believe  that  the  matter  ought  to  be  carefully  studied  from  all 
viewpoints  before  large  additional  appropriations  are  made. 

Fourth. —  Yorktown  Heights. 

This  is  an  institution  for  boys.  It  is  also  proposed  to  be  built 
upon  the  cottage  plan,  and  the  same  investigation,  we  believe, 
should  be  made  in  connection  with  this  institution  as  to  Letch- 
worth  Village.  The  cost  of  this  institution  will  be  over 
$2,000,000. 

Fifth.— Mohansic  State  Hospital  for  Insane. 

Very  large  appropriations  have  been  made  for  this  hospital  in 
the  past,  but  there  has  been  great  delay  in  proceeding  with  the 
work,  which  to  us  seems  to  be  inexcusable.  This  institution 
undoubtedly  should  be  completed  as  soon  as  possible,  as  it  will  be 
a  relief  to  the  cons^ested  conditions  in  connection  with  the  ISTew 
York  city  hospitals  for  the  insane,  but  there  is  such  a  large 
amount  of  money  unexpended  at  present  that  we  do  not  believe 
a  new  appropriation  should  be  made  until  the  work  in  progress 
is  more  speedily  hastened.  We  also  believe  that  a  study  should 
be  made  as  to  whether  or  not  this  institution  cannot  be  greatly 
increased  so  as  to  care  for  a  larger  number  of  inmates  than  was 
contemplated  \^h.en  its  construction  was  begun,  as  it  is  the  experi- 
ence that  the  larger  number  of  inmates  that  can  be  taken  care  of. 
the  less  is  the  per  capita  and  overhead  charge. 

Sixth. —  Utica  State  Hospital. 

This  hospital  is  located  in  the  heart  of  the  city  of  Utica.  There 
has  been  a  desire  by  a  number  of  the  people  of  Utica  to  build  a 
new  hospital  outside  of  the  city  limits  and  abandon  the  present 
hospital  therein,  and  an  appropriation  has  been  made  for  the 
purchase  of  land  in  connection  with  building  a  new  hospital. 

The  present  Utica  State  Hospital  is  a  first-class  institution, 
complete  in  all  respects  and  able  to  care  for  the  inmates  confined 
therein,  and  the  doing  away  with  this  hospital  would  be  destroying 
the  State's  property  now  in  existence  and  in  use.  We  do  not 
believe  that  any  additional  appropriation  should  be  made  for  the 
new  hospital  imtil  the  whole  question  as  to  the  future  policy  of 
State  hospitals  is  considered. 


76 

Seventh. —  Proposed  New  Hospital  near  New  York  City. 

It  is  proposed  to  build  a  new  hospital  near  the  city  of  New 
York  on  what  is  kno\vn  as  the  old  Creedmoor  rifle  range  site. 
This  land  is  a  long  narrow  strip  with  a  wide  parkway  in  the 
center,  is  not  adapted  at  all  for  the  proper  grouping  of  buildings, 
and  the  value  of  land  in  the  vicinity  is  so  high  that  to  purchase 
additional  lands  iu  connection  therewith  would  be  to  entail 
enormous  cost. 

Both  at  Kings  Park  Hospital  and  at  Central  Islip  Hospital  the 
State  is  the  owner  of  very  large  tracts  of  land,  and,  if  in  addition 
to  the  new  hospital  at  Mohansic,  it  is  necessary  to  provide  further 
hospital  facilities,  we  believe  that  the  question  should  be  studied 
as  to  whether  or  not  additions  should  not  be  constructed  at  Kings 
Park  or  Central  Islip,  wdiereby  the  overhead  charges  will  not  be 
increased.  We  recommend  that  no  appropriations  be  made  in 
connection  with  the  proposed  Creedmoor  site,  but  that  the  land, 
which  is  of  great  value,  be  sold  and  the  avails  be  used  either  at 
some  other  site  or  in  connection  with  additions  to  Kings  Park  or 
Central  Islip. 

Eighth. —  Great  Meadov^  Prison. 

This  institution  is  now  nearing  completion,  but  there  has  also 
been  great  delay  in  constructing  and  finishing  the  buildings.  An 
appropriation  was  made  last  year  of  $630,000,  and  we  under- 
stand this  will  provide  for  a  complete  unit  for  the  prison.  Large 
additional  appropriations,  however,  are  asked  for  this  year  in 
connection  with  this  institution,  but  we  believe  that  the  present 
buildings  should  be  completed  before  any  new  appropriations  are 
made. 

Ninth. —  Sing   Sing  Prison. 

For  several  years  past  there  has  been  agitation  in  favor  of  build- 
ing a  new  State  prison  near  the  city  of  J^^ew  York.  A  site  was  first 
procured  near  Pear  Mountain,  which  was  abandoned,  and  later 
a  site  was  purchased  at  Wingdale,  where  construction  contracts 
were  awarded,  but  this  site  has  also  been  abandoned.  The  prop- 
osition is  now  made  that  a  new  prison  ought  not  to  be  built,  but 
that  Sing  Sing  should  be  remodeled  and  reconstructed.  We  do 
not  believe  that  Sing  Sing  prison,  on  account  of  its  small  area,  is 
a  proper  place  for  the  expenditure  of  any  large  amounts  of  money 
for  new  construction,  and  that,  if  it  is  necessary  after  the  prison 


77 

at  Great  Meadow  is  inaugurated  to  build  a  new  prison,  that  tliis 
matter  should  again  be  given  the  most  careful  consideration. 

Tenth. —  Long  Island  Agricultural  School.  ' 

An  appropriation  has  heretofore  been  made  of  $100,000  for 
the  purchase  of  land  in  connection  with  the  establishment  of  a 
secondary  agricultural  school  of  education  on  Long  Island.  This 
year  an  appropriation  is  asked  for  $704,500  for  buildings. 

We  have  heretofore  dealt  in  our  report  with  the  questions  relat- 
ing to  secondary  schools  of  agriculture,  the  limiting  of  these 
schools  to  purely  secondary  work,  and  the  keeping  of  the  cost  of 
buildings  and  maintenance  down  to  as  low  a  figure  as  possible. 
The  State's  expenditure  in  connection  with  agricultural  schools 
is  growing  by  leaps  and  bounds,  and  there  is  a  continual  demand 
upon  each  Legislature  for  the  building  of  a  large  number  of  simi- 
lar schools.  The  demand  for  this  school  is  so  large  that  we  be- 
lieve the  most  careful  consideration  should  be  given  as  to  the  ques- 
tions relating  to  the  character  of  the  school  to  be  erected,  the 
class  of  work  which  it  is  to  teach,  and  the  number  of  students 
that  are  liable  to  attend.  In  the  other  secondary  schools  of  the 
State  the  attendance  has  been  found  to  be  limited  in  number,  al- 
though several  of  these  schools  have  been  established  for  several 
years. 

Eleventh. —  State  Office  Buildings. 

In  the  city  of  Albany  there  are  now  a  number  of  departments 
located  in  quarters  outside  of  the  Capitol,  and  the  same  situation 
also  prevails  in  the  city  of  !N"ew  York  and  in  the  city  of  Buffalo. 
There  is  no  doubt  that  the  State  would  be  financially  benefited 
if  suitable  ofiice  buildings,  at  not  too  large  expense,  were  erected, 
and  that  the  rentals  now  paid  would  easily  pay  the  interest  and 
sinking  fund  charges  in  connection  with  such  institutions,  and 
this  matter  should  be  carefully  and  thoroughly  investigated. 

Twelfth. —  State  Fair  at  Syracuse. 

The  State  Fair  at  Syracuse  has  grown  to  be  a  very  successful 
State  institution.  A  large  amount  of  money  has  been  expended, 
and  the  general  plan  for  the  future  development  of  the  State  Fair 
has  been  laid  out,  involving  the  erection  of  a  number  of  new  build- 
ings and  the  rearranging  of  present  structures  in  harmony  there- 
with. Demands  have  been  made  upon  the  Legislature  this  year 
for  large  appropriations  to  carry  out  this  project.    The  plan  ought 


78 

to  be  completed  in  the  near  fntiire,  as  the  State  Fair,  in  a  way, 
is  earning  a  Large  anionnt  of  money  upon  the  investment.  We 
believe,  however,  that  the  moneys  in  connection  with  this  propo- 
sition should  be  raised  from  the  sale  of  bonds. 

The  foregoing  statement  shows  the  tremendous  demands  upon 
the  State  for  new  institutions  and  buildings,  and  foreshadows  a 
large  increase  in  State  expenditures  in  the  future  for  maintenance 
in  connection  therewith.  It  is  impossible  for  anyone,  under  pres- 
ent conditions,  to  fairly  determine  to  what  extent  the  State  should 
commit  itself  to  the  policy  of  these  institutions,  and  the  amounts 
that  should  be  properly  appropriated  in  connection  with  their 
buildings.  The  State's  finances  prohibit  the  expenditure  in  any 
one  year  of  any  amount  sufficient  to  complete  the  institutions 
within  a  reasonable  time. 

We  are,  therefore,  of  the  opinion  that  the  entire  matter  relating 
to  the  construction  of  new  institutions  and  buildings  should  be 
taken  up  by  the  Legislature  through  a  committee  to  be  appointed 
by  it,  such  committee  having  the  power  to  employ  the  necessary 
expert  assistants,  and  we  would  recommend  that  such  a  method 
be  adopted. 

When  the  Legislature  has  thus  made  a  careful  study  of  the 
situation  as  a  whole,  we  are  of  the  opinion  that  then  the  entire 
proposition  should  be  submitted  to  the  people  of  the  State  for 
decision  as  to  whether  they  desire  to  enter  upon  the  policy  of 
building  these  institutions,  and  the  amount  of  money  which  they 
are  willing  to  expend  in  connection  therewith. 


79 


AMOUNTS  RECOMMENDED  FOR  REPAIRS  TO  STATE 

INSTITUTIONS. 

State  Hospitals. 

We  recommend  that  an  item  for  general  repairs  on  all  State 
hospitals  be  allowed  of  $250,000,  with  the  right  of  the  State 
Hospital  Commission  to  apportion  this  amount  among  the  differ- 
ent institutions  according  to  their  actual  needs  and  necessities. 

With  this  amount  practically  all  the  other  items  in  connection 
with  the  State  hospitals  can  be  eliminated  except  the  following, 
which  should  be  provided  for  in  a  special  bill. 

Central  Islip. 

Furnishings  and  equipment  for  the  dining  room 

building $15,000  00 

!N^ew  boilers,  north  colony 11,000  00 


$20,000  00 


GOWANDA. 

Ts^ew  boiler $7,500  00 


Hudson  River. 

Furnishings  for  new  additions $5,400  00 

Coal  and  ash  handling  apparatus 3,670  00 


$9,070  00 

Kings  Park. 

Elevators  for  new  buildings $13,200  00 

Extension  of  vacuum  heating  plant 50,000  00 

Screening  windows  and  doors 2,000  00 


$65,200  00 


Rochester. 

Ice  house $2,500  00 

N'ew  plumbing,  north  building 10.000  00 

$12,500  00 


80 

State  Board  of  Charities. 

Western  House  of  JIefuge  fok  Woimen,  Albion. 
Miscellaneous  repairs $3,000  00 

New  York  State  School  for  the  Blind,  Batavia. 

Conduit  and  piping  between  boiler  house  and  new 

building $7,000  00 

Equipping  new  building 3,000  00 

Increasing  boiler   capacity   and   repairs   to    boiler 

plant 4,000  00 

lliscellaneous  repairs 1,000  00 

$15,000  00 

New  York  State  Soldiers'  and  Sailors'  Home,  Bath. 
Miscellaneous  repairs,  additions  and  betterments.  .       $15,000  00 

New  York  State  Reformatory  for  Women,  Bedford. 
Miscellaneous  repairs  and  betterments $3,000  00 

New  York  State  Reformatory,  Elmira. 

Miscellaneous  repairs $6,000  00 

Furnishing  and  equipping  hospital 1,500  00 

Herd  of  tuberculin-tested  cows 3,500  00 


$11,000  00 

New  York  State  Training  Schools  for  Girls,  Hudson. 

Electric    feeder    cable    to   new    school    house    and 

cottages $1,000  00 

Equipment  for  new  school  house 5,000  00 

Miscellaneous  repairs  and  new  equipment 4,000  00 

$13,000  00 

State  Agricultural  and  Industrial  School,  Industry. 

Miscellaneous   repairs   and   betterments,    including 

sewage  disposal $8,000  00 


81 

Thomas  Indian  School,  Iroquois. 

Constructing  corridors  between  the  Administration 

Building  and  Dining  Hall,  between  Dining  Hall 

and  Dormitory  ISTo,   1   and  between  Dormitory 

'No.  1  and  Dormitory  No.  2,  and  Dormitory  No. 

2  and  School  Building $10,000  00 

Equipment  and  furnishing  for  school  building.  .  .  .  1,000  00 

Miscellaneous  repairs 2,000  00 

$13,000  00 

Eastern  New  York  Reformatory,  Napanoch. 
Miscellaneous  repairs  and  equipping  school  rooms        $4,500  00 

New    York    State    Custodial    Asylum    for   Feeble-Minded 

Women,  Newark. 

Two  additional  boilers,  fittings,  connections  and  in- 
stallation    $7,000  00 

Trunk  sewer 2,000  00 

Miscellaneous  repairs 3,500  00 

$12,500  00 

New  York  State  Woman's  Relief  Corps  Home,  Oxford. 
Miscellaneous  repairs $2,500  00 

New  York  House  of  Refuge,  Randall's  Island. 
Miscellaneous  repairs $2,000  00 

New  York  State  Hospital  for  the  Treatment  of  Tuber- 
culosis, Ray  Brook. 

Enlargement  of  toilet  sections $3,000  00 

Miscellaneous  repairs  and  additional  equipment ..  .  3,000  00 

$6,000  00 


82 

Rome  State  Custodial  Asylum,  Rome. 

Enlarging  bakery  building $5,000  00 

Toilet  sections  for  building  ''  G,"  wards  4  and  5.  .  .  2,500  00 

Miscellaneous  rc^^airs 2,500  00 


$10,000  00 


Craig  Colony  for  Epileptics,  Sonyea 


Miscellaneous  repairs,  equipment  and  plumbing.  .  .         $G,500  00 

State  Institution  for  Feeble-Minded  Children,  Syracuse. 

Miscellaneous  repairs  and  equipment  for  laundry 

and  kitchen $7,000  00 

New   York   State   Hospital   for   Crippled   and   Deformed 
Children,  West  Haverstraw. 

Miscellaneous  repairs $5,000  00 

Letch  WORTH  Village. 

Miscellaneous  repairs $5,000  00 

Purchase  of  machinery,  horses,  cows,  wagons,  oxen 

and  farm  tools  and  implements 4,000  00 

$9,000  00 

YoRKTOWN  Heights. 

Farm  stock,  tools,  equipment  and  seeds $3,000  00 

Telephone  system 1,200  00 

Miscellaneous  repairs  and  betterments 4,000  00 

$8,200  00 

State  Prisons. 

Included  in  the  items  allowed  in  the  Appropriation  Bill  is  a 
lump  sum  of  $840,000  for  maintenance  and  repairs  of  the  prisons 
of  the  State,  and  this  we  believe  is  sufficient  to  take  care  of  the 
ordinary  repairs  necessary  to  keep  the  prisons  in  condition. 


83 

The  only  items  in  addition  that  we  think  ought  to  be  allowed 
are  for  IMatteawan  Hospital  for  Criminal  Insane,  for  the  follow- 
ing items : 

l^ew  boilers    $9,000  00 

Dining  room  and  kitchen  for  women's  building  now 

undergoing  construction 25,000  00 

^N'ew  artesian  well 2,000  00 

$36,000  00 


We  have  prepared  a  Special  Bill,  making  appropriations  for 
the  above  items,  and  recommend  that  all  other  Special  Bills  in 
connection  with  State  Hospitals,  State  Charitable  Institutions, 
and  State  Prisons  be  not  approved. 


LEGISLATION  SUBMITTED. 

As  a  result  of  our  investigations,  and  for  the  purpose  of  effec- 
tively carrying  out  the  recommendations  Avhich  we  propose,  we 
have  submitted  and  herewith  submit  the  following  bills,  and  urge 
their  adoption: 

First.  An  act  to  create  a  Department  of  Efficiency  and 
Economy. 

Second.    An  act  to  establish  a  State  Board  of  Estimate. 

Third.  An  act  to  establish  a  State  Board  of  Contract  and 
Supply. 

Fourth.  An  act  amending  the  executive  law,  giving  to  the 
Comptroller  the  audit  of  all  accounts. 

Fifth.  A  companion  bill  to  the  last  act,  to  further  the  accom- 
plishing of  the  same  purpose. 

Sixth.    An  act  to  increase  the  tax  upon  motor  vehicles. 

Seventh.    An  act  to  increase  the  stock  transfer  tax. 

Eighth.  An  act  to  raise  additional  revenues  through  the 
Agricultural  Department  of  the  State. 

N'inth.    An  act  to  provide  free  text  books  throughout  the  State. 
Tenth.    An  act  to  amend  the  Conservation  Law  so  as  to  change 


84 

the   Conservation  ComTnission  from  a  tliroc-Ticaded  commission, 
as  it  is  now  constituted,  to  a  singlc-lieadcd  commission. 

Eleventh.  An  act  to  create  out  of  the  present  Conservation 
Department  a  separate  department  of  marine  fisheries,  under  the 
supervision  of  a  Commissioner  of  Marine  Fisheries. 

Twelfth.  An  act  to  amend  the  Navigation  Laws,  so  as  to  reduce 
the  number  of  inspectors  of  steam  vessels  from  two,  as  now  pro- 
vided by  law,  to  one,  and  containing  such  regulations  as  to  the 
duties  of  the  inspector  and  his  compensation  as  will  result  in 
greater  efficiency  and  economy. 


Thirteenth.  An  act  to  amend  the  State  Finance  Law,  so  as 
to  make  the  fiscal  year  begin  July  1st  instead  of  October  1st, 
and  providing  that  this  change  shall  go  into  effect  on  the  1st  day 
of  July,  1915. 

Fourteenth.  An  act  to  amend  the  State  Finance  Law,  so  as 
to  regulate  the  subject  of  unexpended  balances,  now  involved  in 
some  confusion,  by  providing  that  all  unexpended  balances  shall 
lapse  and  cease  to  be  available  at  the  end  of  the  fiscal  year  for 
which  the  appropriations  out  of  which  the  unexpended  balances 
arise  are  made,  subject  to  the  power  of  the  Legislature  to  provide 
in  the  act  making  the  appropriation  for  a  different  period  during 
which  the  appropriation  shall  be  available.  In  order  to  avoid 
confusion  in  making  this  change  in  the  law  the  act  provides  that 
its  policy  shall  not  become  operative  until  the  first  day  of  Octol;er, 
1914. 

Fifteenth.  An  act  to  amend  the  Prison  Law,  so  as  to  rearrange 
the  State  Commission  of  Prisons,  now  composed  of  seven  mem- 
bers with  a  per  diem  charge  for  attendance  at  meetings,  etc.,  to 
a  Commission  composed  of  three  members  to  be  appointed  by  the 
Governor,  by  and  with  the  advice  and  consent  of  the  Senate,  at 
an  annual  salary  of  $5,000  each,  and  transferring  to  the  Com- 
mission of  Prisons  as  thus  rearranged  the  powers  and  duties  of 
the  present  State  Commission  of  Prisons,  the  present  State  Board 
of  Classification  and  the  present  State  Board  of  Parole. 

Sixteenth.  An  act  to  amend  chapter  G1.3  of  the  Laws  of  1910, 
in  relation  to  the  State  Probation  Commission,  by-  transferring 
the  powers  and  duties  of  the  present  State  Probation  Commission 
to  the  Commission  of  Prisons  and  abolishing  the  existing  State 
Board  of  Probation. 


85 

Seventeenth.  An  act  to  amend  chapter  670  of  the  Laws  of 
lOOG,  which  created  a  commission  to  select  and  purchase  a  site 
for  a  new  s^tate  prison  in  the  eastern  part  of  the  state  to  take  the 
phice  of  Sing  Sing  Prison,  by  transferring  the  powers  and  duties 
of  the  Commission  authorized  by  said  act  to  the  Commission  of 
Prisons,  and  abolishing  the  Commission  authorized  by  the  act 
mentioned. 

Eighteenth.  An  act  to  appropriate  $600,000  for  the  elimina- 
tion of  grade  crossings,  $300,000  to  be  appropriated  to  the  Public 
Service  Commission  for  the  First  District,  and  $300,000  to  the 
Public  Service  Commission  for  the  Second  District. 

ISTineteenth.  An  act  to  amend  section  454  of  the  Code  of 
Criminal  Procedure,  in  relation  to  the  defense  of  insanity,  so  as 
to  provide  that  in  cases  where  the  defense  of  insanity  is  success- 
fully interposed  a  final  judgment  shall  be  entered  upon  the  verdict 
rendered  pursuant  to  the  requirements  of  the  section,  and  further 
requiring  that  the  Court  must,  if  the  defendant  be  in  custody  and 
it  deems  his  discharge  dangerous  to  the  public  peace  or  safety, 
commit  him  to  the  State  Lunatic  Asylum  by  an  adjudication  and 
order  which  shall  be  incorporated  in  the  judgment  to  be  entered 
upon  the  verdict,  and  making  such  judgTaent  final  and  conclu- 
sive and  not  subject  to  review  except  by  direct  appeal. 

This  proposed  legislation  is  intended  to  make  the  verdict  of 
the  jury  acquitting  a  defendant  on  the  ground  of  insanity  and  his 
commitment  under  such  verdict,  in  case  he  shall  be  committed,  a 
final  judgment  which  shall  prevent  any  attempt  by  writ  of  habeas 
corpus,  or  otherwise,  to  review  that  determination,  except  as  it 
may  be  reviewed  upon  a  direct  appeal  from  the  judgment.  It  is 
our  opinion  that  this  legislation  will  establish  the  status  of  an 
insane  person  acquitted  because  of  insanity  and  committed  to 
the  lunatic  asylum  because  his  liberation  would  be  dangerous  to 
the  public,  so  that  the  transparently  inconsistent  position  of  such 
a  defendant  that  he  w^as  not  insane  when  committed  may  not  be 
made  the  subject  of  review  in  numerous  habeas  corpus  proceed- 
ings after  his  commitment. 


^S)"- 


Twentieth.  An  act  to  repeal  chapter  255  of  the  Laws  of  1909, 
which  empowered  the  Commissioners  of  the  Land  Office  to  adjust 
the  claim  of  the  Cayuga  Nation  of  Indians.  The  act  sought  to 
be  repealed  was,  in  our  opinion,  improvident  legislation.  The 
course  of  procedure  under  the  act  has  fully  demonstrated   this 


86 

criticism.  When  the  chiim  was  presented  to  the  Commissioners 
of  the  Land  Office,  pnrsuant  to  the  act,  tlie  Commissioners  (k;- 
cided  that  tho  claim  had  no  legal  hnsis,  and  it  therefore  rejected 
the  claim.  An  application  Avas  then  made  to  the  Supremo  Court 
for  a  writ  of  mandanms  to  compel  the  Land  Board  to  make  an 
award  under  the  statute  upon  the  theory  that  the  Legislature  had 
established  tho  claim  by  the  act  in  question  and  left  the  Com- 
missioners of  the  Land  OfHce  only  the  question  of  determining 
the  amount  of  the  claim  within  the  amount  prescribed  as  the 
maximum  in  the  act.  The  writ  of  mandanms  was  denied  at  the 
Special  Term,  but  reversed  by  a  divided  court  in  the  Appellate 
Division,  and  that  reversal  sustained  by  a  divided  court  in  the 
Court  of  Appeals.  The  result  of  the  litigation,  practically,  was 
that  the  courts  determined  that  the  Legislature  had  determined 
the  validity  of  the  claim  and  left  to  tho  Commissioners  of  the 
Land  Office  only  the  detennination  within  the  maximum  amount 
prescribed.  Of  the  amount  to  be  awarded  under  this  determina- 
tion of  the  courts,  the  Commissioners  of  the  Land  Office  have 
now  made  an  award  out  of  respect  for  the  decision  of  the  courts, 
but  without  changing  its  view  that  the  claim  rests  upon  no  legal 
basis.  It  is  apparent  that  the  Legislature  which  passed  the  act 
in  question  did  not  contemplate  any  such  result.  If  the  claimant 
has  any  valid  claim  against  the  state  the  most  that  the  Legisla- 
ture should  do  is  to  authorize  the  submission  of  the  merits  of  the 
claim  to  the  proper  and  usual  determination  of  the  Board  of 
Claims  for  the  purpose  of  having  the  merits  of  the  claim  ascer- 
tained and  determined,  l^o  appropriation  has  thus  far  been 
made  for  tho  pa^onent  of  any  award  in  this  matter;  therefore,  it 
is  within  the  discretion  of  the  Legislature  now  in  session  to  re- 
arrange and  readjust  this  matter  according  to  its  judgment  as 
to  what  is  the  proper  legislative  policy  under  such  circumstances. 
Our  recommendation  is  that  the  law  should  be  repealed,  and  that 
if  any  legislation  is  desired  upon  this  subject  it  should  be  only 
such  legislation  as  will  submit  the  validity  and  merits  of  the  claim 
to  the  Board  of  Claims  for  trial  and  determination  in  the  usual 
course.  This  will  avoid  the  imputation  which  the  decision  of 
the  courts  has  placed  upon  the  act  in  question  that  the  Legislature 
intended  to  give  to  the  claimant,  without  regard  to  the  validity  of 
its  claim,  such  amount  as  might  be  fixed  by  the  Commissioners 
of  the  Land  Office,  who  were  not  given  any  power  to  determine 
the  validity  or  merits  of  the  claim  itself. 


87 

Twenty-first.  An  act  to  repeal  cliapter  564  of  the  Laws  of 
1910  and  its  amendatory  act,  chapter  254  of  the  Laws  of  1011, 
which  constitute  special  legislation  restricting  the  application  of 
the  general  highway  law  of  the  state  in  certain  special  localities. 
The  language  of  the  original  act  was  apparently  general,  but  in 
reality  applied  to  only  one  special  locality.  The  language  of  the 
amendatory  act  was  more  general  but  to  the  same  effect.  Tl  he 
reason  for  such  special  legislation  in  derogation  of  the  general 
policy  of  the  state  as  expressed  in  the  general  Highway  Law  is 
not  apparent. 

Twenty-second.  An  act  to  create  a  Commission  to  revise  the 
Banking  Law  and  making  an  appropriation  therefor. 

Twenty-third.  An  act  to  amend  the  Banking  Law  in  relation 
to  books  and  accounts  of  corporations  organized  under  it. 

Twenty-fourth.  An  act  to  amend  the  Banking  Law  in  rela- 
tion to  the  powers  of  the  Superintendent  of  Banks. 

Twenty-fifth.  An  act  to  amend  the  Banking  Law  in  relation  to 
loans  by  a  corporation  organized  under  the  Banking  Law  to  its 
incorporators  or  shareholders  to  enable  them  to  pay  for,  hold  or 
purchase  the  shares  of  such  corporation. 

Twentv-sixth.  An  act  to  amend  the  Banking  Law  in  relation 
to  examinations  by  boards  of  directors  of  banks  and  trust  com- 
panies and  reports  thereof. 

Twenty-seventh.  An  act  to  amend  the  Banking  Law  in  rela- 
tion to  the  purchase  of  notes,  bonds  and  other  evidences  of  in- 
debtedness secured  by  mortgage  or  other  lien  upon  real  estate  upon 
which  there  is  any  prior  mortgage,  lien,  or  encumbrance. 

Twenty-eighth.  An  act  to  amend  the  Penal  Law  in  relation 
to  the  misconduct  of  officers,  directors,  trustees  or  employees  of 
banking  corporations. 

Twenty-ninth.  An  act  to  amend  the  Penal  Law  in  relation 
to  falsification  of  books,  reports  or  statements  of  corporations  sub- 
ject to  the  Banking  Law  by  an  officer,  director,  trustee,  employee 
or  agent  thereof. 

Thirtieth.  An  act  to  amend  the  Printing  Law  whereby  it  is 
intended  to  give  to  the  State  Printing  Board  power  to  system- 


88 

atieally  and  economically  provide  for  various  printing  contracts 
under  which  the  state  printing  is  to  be  done. 

Thirty-lirst.  An  act  to  increase  the  fees  paid  to  the  health 
officer  of  the  port  of  New  York. 

Thirty-second.  An  act  to  repeal  the  act  providing  for  a  farm 
and  industrial  colony  for  tramps  and  vagrants. 

Thirty-third.  An  act  to  repeal  that  part  of  the  Public  Health 
Law  providing  for  the  appointment  of  a  board  to  examine  feeble- 
minded criminals  and  defectives. 

Thirty-fourth.  An  act  making  appropriations  for  construc- 
tions, improvements,  repairs  and  equipment  at  various  State 
institutions. 

Thirty-fifth.  An  act  to  amend  chapter  445  of  the  Laws  of 
1912,  repealing  the  provisions  of  the  Health  Law  in  relation  to 
operations  for  the  prevention  of  procreation. 

Respectfully  submitted, 

JOHl^  N.  CAELISLE, 
JOHN  H.  DELAKEY, 
H.   GORDON  LYNN, 

Committee  of  Inquiry, 
John  T.  NoRToisr, 
Counsel. 


APPENDICES. 


OPINION   OF  HON.  JOHN  T.   NORTON,   COUNSEL  TO 
COMMITTEE  OF  INQUIRY,  UPON  SINKING  FUNDS. 


We  are  advised  by  the  Comptroller  of  the  State  that  the  several 
sinking  funds,  kept  pursuant  to  law,  are  as  follows : 

(1)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  147  of  the  Laws  of 
1903  for  the  improvement  of  the  Erie  canal,  the  Oswego  canal  and 
the  Chamj)lain  canal,  a  total  issue  of  two  million  dollars,  par  value. 

(2)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  147  of  the  Laws  of 
1903  and  chapter  241  of  the  Laws  of  1909  for  the  improvement 
of  the  Erie,  Oswego  and  Champlain  canals,  a  total  issue  of  twenty- 
one  million  dollars,  par  value. 

(3)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  147  of  the  Laws  of 
1903,  chapter  302  of  the  Laws  of  1906,  chapter  241  of  the  Laws 
of  1909  and  chapter  60  of  the  Laws  of  1910,  for  the  improvement 
of  the  Erie,  Oswego  and  Champlain  canals,  a  total  issue  of  forty 
million  dollars,  to  which  is  to  be  added  an  issue  of  twenty  million 
dollars  contemplated  to  be  sold  in  the  current  year. 

(4)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  391  of  the  Laws  of 
1909  and  chapter  139  of  the  Laws  of  1910  for  the  improvement 
of  the  Cayuga  and  Seneca  canals,  a  total  issue  of  three  million 
dollars,  to  which  is  to  be  added  an  issue  of  two  million  dollars  con- 
templated to  be  sold  in  the  current  year. 

(5)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  746  of  the  Laws  of 
1911,  for  furnishing  proper  terminals  and  facilities  for  barge  canal 
traffic,  including  the  acquisition  and  interchange  of  property  there- 
for, a  total  issue  of  five  million  dollars,  to  which  is  to  be  added 
an  issue  of  five  million  dollars  contemplated  to  be  sold  in  the 
current  year. 

(6)  The  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  479  of  the  Laws  of 

[911 


92 

1!)00  and  chapter  718  of  the  Laws  of  1007  for  the  improvement  of 
highways,  a  total  issue  of  thirty-four  million  dollars,  to  which  is 
to  be  added  an  issue  of  sixteen  million  dollars  contemplated  to 
be  sold  in  the  current  year. 

(7)  Tlie  sinking  fund  provided  for  the  retirement  of  the  bonds 
issued  pursuant  to  the  provisions  of  chapter  363  of  the  Laws  of 
1910  for  the  improvement  and  extension  of  Palisades  Interstate 
Park,  a  total  issue  of  two  million  five  hundred  thousand  dollars, 
par  value. 

The  total  amount,  par  value,  of  bonds  issued  and  outstanding 
to  which  these  sinking  funds  relate,  is  one  hundred  and  seven 
million  five  hundred  thousand  dollars.  The  contemplated  issues 
during  the  current  year  amount  to  forty-three  million  dollars. 
Thus,  the  grand  total  is  one  hundred  and  fifty  million  five  hun- 
dred thousand  dollars. 

In  these  several  sinking  funds,  the  Comptroller,  after  the  method 
that  has  grown  up  in  his  office,  has  figured  that  there  should  be 
added,  by  appropriation  or  direct  tax,  for  the  fiscal  year  beginning 
October  1,  1913,  the  following  amounts,  viz. : 


Total 

Fund. 

to  be  added 

For  principal. 

For  interest. 

(1)  supra.  . . , 

$264,551  6G 

$204,551  66 

$60,000  00 

(2)  supra. . . . 

925,930  82 

295,930  82 

630,000  00 

(3)  supra. . . . 

3,306,895  77 

906,895  77 

2,400,000  00 

(4)  supra. . .  . 

275,574  66 

75,574  66 

200,000  00 

(5)  supra. . .  . 

661,379  16 

261,379  16 

400,000  00 

(  G )  supra . — 

60,626  42 

30,626  42 

30,000  00 

(  6  )  supra .... 

3,260,000  00 

980,000  00 

2,280,000  00 

(7)  supra. . . . 

137,787  32 

37,787  32 

100,000  00 

Total 

$8,892,745  81 

1 : 

$2,792,745  81 

$6,100,000  00 

On  the  31st  day  of  December,  1912,  there  were  in  the  various 
sinking  funds  named  the  following  amounts,  viz. : 

Canals  (1),  (2),  (3)  and  (4),  supra $17,907,324  72 

Highways  (5)  and  (6),  supra 4,320,913  76 

Palisades  Interstate  Park  (7),  supra 75,802  47 

Total ■ $22,304,040  95 


93 

This  total  of  sinldng  funds  is  now  held  in  the  following  form: 

Investments $20,426,746  84 

Cash 1,877,294  11 

Total $22,304,040  95 


As  clearly  shown  in  the  report  of  Mr.  Cameron,  these  sinking 
fimds,  because  of  erroneous  practices  with  reference  to  calcula- 
tion of  contributions  to  them,  are  far  in  excess  of  the  amount 
necessary  or  proper  to  be  included  therein  as  follows : 

Excess  in  canal  funds $15,347,840  54 

Excess  in  highway  funds 3,394,395  36 

Excess  in  Palisades  Interstate  Park  fund 30,810  07 

Total  excess   $18,773,045  97 


According  to  the  Comptroller's  statement,  the  revenue  from 
sinking  fund  investments,  based  on  the  securities  now  held  for 
the  various  funds,  for  one  year  will  aggregate  the  sum  of 
$776,192.70. 

The  provisions  of  the  Constitution  of  the  State  relating  to 
these  sinking  funds  are  as  follows: 

ARTICLE  VII,  §   4. 

Debts  such  as  may  be  contracted  are  required  to  be  "  authorized  by  law  "; 
"  and  such  law  shall  impose  and  provide  for  the  collection  of  a  direct  annual 
tax  to  pay,  and  sufficient  to  pay,  the  interest  on  such  debt  as  it  falls  due, 
and  also  to  pay  and  discharge  the  principal  of  such  deht  within  fifty  year^, 
from  the  time  of  the  contracting  thereof.  *  •  ♦  When  any  sinking  fund 
created  under  this  section  shall  equal  in  amount  the  debt  for  which  it  was 
created,  no  further  direct  tax  shall  be  levied  on  account  of  said  sinking  fund, 
and  the  Legislature  shall  reduce  the  tax  to  an  amount  equal  to  the  accruing 
interest  on  such  debt." 

ARTICLE  VII,  §  5. 

The  sinking  funds  provided  for  the  payment  of  interest  and  the  extin- 
guishment of  the  principal  of  the  debts  of  the  State  shall  be  separately 
kept  and  safely  invested,  and  neither  of  them  shall  be  appropriated  or  used 
in  any  manner  other  than  for  the  specific  purpose  for  which  it  shall  have 

been  provided. 

ARTICLE  VII,  §   10. 

The  canals  may  be  improved  in  such  manner  as  the  Legislature  shall  pro- 
vide by  law.  A  debt  may  be  authorized  for  that  purpose  in  the  mode  pre- 
scribed by  section  four  of  this  article,  or  the  cost  of  such  improvement  may 
be  defrayed  by  the  appropriation  of  funds  from  the  State  treasury,  or  by 
equitable  annual  tax. 


94 

ARTICLE  VII,  §  11. 
The  Legisliture  may  appropriate  out  of  any  fmids  in  tlie  treasury, 
moneys  to  pay  the  accruing  interest  and  principal  of  any  debt  lierctofore  or 
hereafter  created,  or  any  part  thereof  and  may  set  apart  in  each  fiscal  year. 
moneys  in  the  State  treasury  as  a  sinkinfr  fund  to  pay  the  interest  as  it 
falls  due,  and  to  pay  and  discliarge  the  principal  of  any  debt  heretofo'c  or 
hereafter  created  under  section  four  of  article  seven  of  the  constitution  ui  til 
the  same  shall  l>c  wholly  paid,  and  the  principal  and  income  of  such  sink  iio 
fund  shall  be  applied  to  the  purpose  for  which  said  sinking  fund  is  created 
and  to  no  other  purpose  whatever;  and,  in  the  event  such  moneys  so  set  apart 
in  any  fiscal  year  be  sufficient  to  provide  such  sinking  fund,  a  direct  annual 
tax  for  such  year  need  not  be  imposed  and  collected,  as  required  by  the  pro- 
visions of  said  section  four  of  article  seven,  or  of  any  law  enacted  in  pursu- 
ance thereof. 

ARTICLE  VII,  §  12. 

A  debt  or  debts  of  the  State  may  be  autliorized  by  law  for  the  improvement 
of  highways.  ♦  *  ♦  The  aggregate  of  tlie  debts  authorized  by  tliis  section 
shall  not  at  any  one  time  exceed  the  sum  of  fifty  millions  of  dollars.  The 
payment  of  the  annual  interest  on  sucli  debt  and  the  creation  of  a  sinhinq 
fund  of  at  least  two  per  centum  per  annum  to  discharge  the  principal  at 
maturity  shall  be  provided  by  general  laws  whose  force  and  effect  shall  not 
be  diminished  during  the  existence  of  any  debt  created  thereunder.  *  *  * 
None  of  the  provisions  of  the  fourth  section  of  this  article  shall  apply  to 
debts  for  the  improvement  of  highways  hereby  authorized. 

The  various  provisions  of  the  statutes  relating  to  these  sinking 
funds  are  as  follows : 

IMPROVEMENT   OF   ERIE,   OSWEGO   AND   CHAMPLAIN 

CANALS. 
Laws  of  1903,  Chapter  147,  Part  of  §  2. 
Aii  Act  making  provision  for  issuing  bonds  to  the  amount  of  not  to  exceed 
one  hundred  and  one  million  dollars  for  the  improvement  .f  the  Erie  canal, 
the  Oswego  canal  and  the  Champlain  canal,  and  providing  for  a  submission 
of  the  same  to  the  people  to  be  voted  upon  at  the  general  election  to  be 
held  in  the  year  nineteen  hundred  and  three. 

There  is  hereby  imposed  for  each  year  after  this  act  goes  into  effect  until 
all  the  bonds  issued  under  the  authority  of  this  act  shall  be  due,  an  a7inual 
tax  of  twelve  one-thousandths  of  a  mill  upon  each  dollar  of  valuation  of  the 
real  and  personal  property  in  this  state  subject  to  taxation,  for  each  and 
every  one  million  dollars  or  part  thereof  in  par  value  of  said  bonds  issued 
and  outstanding  in  any  of  said  fiscal  years,  the  annual  amount  of  such  tax 
to  be  computed  by  the  comptroller,  which  taxes  shall  be  assessed,  levied  and 
collected  by  the  annual  assessment  and  collection  of  taxes  of  each  of  such 
years  in  the  manner  prescribed  by  law  and  shall  be  paid  by  the  several  county 
treasurers  into  the  treasury  of  the  state,  and  the  proceeds  of  said  tax,  after 
paying  the  interest  due  upon  the  oxitstanding  bonds  shah  be  invested  by  the 
comptroller  under  the  direction  of  the  commissioners  of  the  canal  fund,  and, 


95 

together  with  the  interest  arising  therefrom,  shall  be  devoted  to  the  sinking 
fund  which  is  hereby  created,  payment  from  which  shall  be  made  to  the  ex- 
tinguishment of  the  indebtedness  created  by  the  sale  of  the  aforesaid  bonds 
as  the  said  bonds  become  due  and  for  no  other  purpose  whatever. 

Laws  of  1906,  Chapter  302,  part  of  §  2  and  §  4. 

An  Act  providing  for  the  issue  of  bonds  of  the  state  to  run  for  a  period  of 
fifty  years  in  lieu  of  bonds  heretofore  authorized  by  chapter  one  hundred  and 
forty-seven  of  the  laws  of  nineteen  hundred  and  three,  but  not  issued. 
There  is  hereby  imposed  for  each  year  after  this  act  goes  into  efl'cct,  until 
provision  is  fully  made  for  the  payment  of  the  interest  and  principal  of  said 
bonds  a  direct  annual  tax  sufficient  to  pay  said  interest  and  principal  within 
fifty  years,  to  wit:  a  tax  of  four  hundred  and  eighty-one  one-thousandths 
of  a  mill  upon  each  dollar  of  valuation  of  real  and  personal  property  in  the 
state  subject  to  taxation,  which  taxes  shall  be  assessed,  levied  and  collected 
by  the  annual  assessment  and  collection  of  taxes  in  each  of  said  years  in  the 
manner  prescribed  by  law,  and  shall  be  paid  by  the  several  county  treasurers 
into  the  treasury  of  the  state.  The  proceeds  of  such  tax  shall  be  invested  by 
the  comptroller  under  the  direction  of  the  commissioners  of  the  canal  fund, 
and,  together  ivith  the  interest  arising  therefrom,  any  premiums  received 
on  the  sale  of  said  bonds,  and  interest  accruing  on  deposits  of  money  received 
from  the  sale  of  said  bonds,  or  from  miscellaneous  sources,  shall  constitute 
a  sinking  fund,  which  is  hereby  created.  Said  fund  shall  be  used  solely  for 
the  purpose  of  paying  the  principal,  and  interest  of  bonds  issued  in  accord- 
ance with  the  provisions  of  this  act.  Provided,  however,  that  in  case  the 
Legislature  shall  set  apart  in  any  fiscal  year,  moneys  in  the  state  treasury  as 
a  sinking  fund  to  pay  the  interest  on  the  said  bonds  as  it  falls  due  and  to 
pay  and  discharge  the  principal  thereof,  and  such  moneys  shall  be  sufficient 
to  provide  a  sum  equal  to  the  amount  that  would  otherwise  have  been  raised, 
as  hereinbefore  provided  in  such  fiscal  year  for  such  sinking  fund,  a  direct 
annual  tax  for  such  year  shall  not  be  imposed  and  collected  as  required  bj/ 
the  provisions  of  this  act. 

§  4.  Any  surplus  arising  from  the  sale  of  bonds,  the  sale  of  abandoned  lands, 
or  from  the  sale  of  buildings,  or  other  property  upon  lands,  condemned  or 
otherwise  purchased,  for  purposes  of  said  improvement,  over  and  above  the 
cost  of  the  entire  work  of  the  said  improvement  of  the  canals,  shall  be  applied 
to  the  sinking  fund  for  the  payment  of  the  said  bonds. 

Laws  of  1909,  Chapter  241,  part  of  §  2. 
An  Act  to  amend  chapter  three  hundred  and  two  of  the  laws  of  nineteen  hun- 
dred and  six,  entitled  "An  act  providing  for  the  issue  of  bonds  of  the  state 
to  run  for  a  period  of  fifty  years  in  lieu  of  bonds  heretofore  authorized  by 
chapter  one  hundred  and  forty-seven  of  the  laws  of  nineteen  hundred  and 
three,  but  not  issued,"  relative  to  the  annual  tax  to  be  imposed  for  the  pay- 
ment of  the  principal  and  interest  of  such  bonds. 

There  is  Ivereby  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay, 
the  interest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay, 
anl  sufficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds 
w  thin  fifty  years  from  the  date  thereof.     The  rate  of  such  annual  tax  shall 


96 

be  four  one-thousandtlis  of  a  mill  on  each  dollar  of  valuation  of  real  and 
personal  property  in  this  state  subject  to  taxation,  for  each  and  every  one 
million  dollars,  or  fraction  thereof,  in  par  value  of  said  bonds  issued  under 
this  act,  and  outstanding  or  to  be  outstanding  during  the  fiscal  year  during 
which  the  amount  of  such  tax  is  computed.  The  legislature  shall  each  year 
compute  the  amount  of  tax  required  as  above  specified,  and  in  making  such 
comjjutatiou  shall  include,  at  the  rate  above  mentioned,  such  bonds  as  will  be 
required  to  be  issued  under  tliis  act  during  the  fiscal  year  for  which  the 
amount  of  such  tax  is  so  computed.  The  tax  imposed,  as  herein  provided, 
shall  be  assessed,  levied  and  collected  in  the  manner  prescribed  by  law,  and 
shall  be  paid  by  the  several  county  treasurers  into  the  treasury  of  the  state. 
The  proceeds  of  such  tax  shall  he  invested  hy  the  comptroller  under  the  direc- 
tion of  the  commissioners  of  the  canal  fund  and  together  with  the  interest 
arising  therefrom,  any  premiums  received  on  the  sale  of  said  hands,  and 
interest  accruing  on  deposits  of  money  received  from  the  sale  of  said  bonds, 
or  from  miscellaneous  sources,  shall  constitute  a  sinking  fund,  which  is 
hereby  created.  Said  fund  shall  be  used  solely  for  the  purpose  of  paying 
the  principal  and  interest  of  bonds  issued  in  accordance  with  the  provisions 
of  this  act.  Provided,  however,  that  in  case  the  legislature  shall  set  apart 
in  any  fiscal  year  moneys  in  the  state  treasury  as  a  sinking  fund  to  pay  the 
interest  on  the  said  bonds  as  it  falls  due  and  to  pay  and  discharge  the 
principal  thereof,  and  such  moneys  shall  be  sufllcient  to  provide  a  sura  equal 
to  the  amount  that  would  otherwise  have  been  raised,  as  hereinbefore  pro- 
vided, in  such  fiscal  year  for  such  sinking  fund,  a  direct  annual  tax  for  such 
year  shall  not  be  imposed  and  collected  as  required  by  the  provisions  of  this 
act. 

Laws  of  1910,  Chapter  66,  part  of  §  2  and  §  4. 

Ax  Act  providing  for  the  issue  of  bonds  of  the  state  to  run  for  a  period  of 
iifty  years  in  lieu  of  bonds  heretofore  authorized  by  chapter  one  hundred 
and  forty-seven  of  the  laws  of  nineteen  hundred  and  three  and  by  chapter 
three  Imndred  and  two  of  the  laws  of  nineteen  hundred  and  six,  as  amended 
by  chapter  two  liundred  and  forty-one  of  the  laws  of  nineteen  hundred  and 
nine,  but  not  issued. 

There  is  licrehy  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay 
the  interest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay  and 
s  ifficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds  icitliin 
fifty  years  from  the  date  thereof.  The  rate  of  such  annual  tax  shall  be  five 
one-thousandths  of  a  mill  on  each  dollar  of  valuation  of  real  and  personal  prop- 
erty in  this  state  subject  to  taxation,  for  each  and  every  one  million  dollars, 
or  fraction  thereof,  in  par  value  of  said  bonds  issued"  under  this  act,  and  out- 
standing or  to  be  outstanding  during  the  fiscal  year  during  which  the  amount 
of  such  tax  is  computed.  The  legislature  shall  each  year  compute  the  amount 
of  tax  requirid  as  above  specilied,  and  in  making  such  computation  shall 
inclr.de,  at  the  rate  above  mentioned,  such  bonds  as  will  be  required  to 
be  issued  under  this  act  during  the  fiscal  year  for  which  the  amount  of  such 
tax  is  so  computed.  The  tax  imposed,  as  herein  provided,  shall  be  assessed, 
levied  and  collected  in  the  manner  prescribed  by  law,  and  shall  be  paid  by 
the  several  county  treasurers  into  the  treasury  of  the  state.     The  proceeds 


97 

of  such  tax  shall  he  invested  hy  the  comptroller  under  the  direction  of  the 
commissioners  of  the  canal  fund  and  together  with  the  interest  arising  there- 
from, any  premiums  received  on  the  sale  of  said  bonds,  and  interest  accruing 
on  deposits  of  money  received  from  the  sale  of  said  bonds,  or  from  miscel- 
laneous sources,  shall  constitute  a  sinking  fund,  which  is  hereby  created. 
Said  fund  shall  be  used  solely  for  the  purpose  of  paying  the  principal  and 
int  rost  of  bonds  issued  in  accordance  with  the  provisions  of  this  act.  Pro- 
vided, however,  tliat  in  case  the  legislature  shall  set  apart  in  any  fiscal  year 
moneys  in  the  state  treasury  as  a  sinking  fund  to  pay  the  interest  on  the 
Baid  bonds  as  it  falls  due  and  to  pay  and  discharge  the  principal  thereof, 
and  such  moneys  sliall  be  sufficient  to  provide  a  sum  equal  to  the  amount  that 
■would  otherwise  have  been  raised,  as  hereinbefore  provided,  in  such  fiscal 
year  for  such  sinking  fund,  a  direct  annual  tax  for  such  year  shall  not  he 
imposed  and  collected  as  required  hy  the  provisions  of  this  act." 

§  4.  Any  surplus  arising  from  the  sale  of  bonds,  the  sale  of  abandoned 
lands,  or  from  the  sale  of  buildings,  or  other  property  upon  lands,  con- 
demned or  otherwise  purchased,  for  purposes  of  said  improvement,  over  and 
above  the  cost  of  tiie  entire  work  of  the  said  improvement  of  the  canals, 
shall  be  applied  to  the  sinking  fund  for  the  payment  of  the  said  bonds. 

Laws  of  1912,  Chapter  186,  part  of  §  2. 
An  Act  to  amend  chapter  sixty-six  of  the  laAVs  of  nineteen  hundred  and  ten, 
entitled  "An  act  providing  for  the  issue  of  bonds  of  the  state  to  run  for 
a  period  of  fiftj^  years  in  lieu  of  bonds  heretofore  authorized  by  chapter 
one  hundred  and  forty-seven  of  the  laws  of  nineteen  hundred  and  three 
and  by  chapter  three  hundred  and  two  of  the  laws  of  nineteen  hundred 
and  six,  as  amended  by  chapter  two  hundred  and  forty-one  of  the  laws 
of  nineteen  hundred  and  nine,  but  not  issued,"  in  relation  to  the  issue  and 
sale  of  bonis  thereunder. 

There  is  hereby  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay  the 
interest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay  and 
sufficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds  xcithin 
fifty  years  from  the  date  thereof.  The  rate  of  such  annual  tax  shall  be  five 
one-thousandtlis  of  a  mill  on  each  dollar  of  valuation  of  real  and  personal 
property  in  this  state  subject  to  taxation,  for  each  and  every  one  million 
dollirs,  or  fraction  thereof,  in  par  value  of  said  bonds  issued  under  this  act, 
ami  outstanding  or  to  be  outstanding  during  the  fiscal  year  during  which 
tiie  amount  of  such  tax  is  computed.  The  legislature  shall  each  year 
computa  the  amount  of  tax  required  as  above  specified,  and  in  making  such 
computation  shall  include,  at  the  rate  above  mentioned,  such  bonds  as  will 
b '  required  to  be  issued  under  this  act  during  the  fiscal  year  for  which  the 
amount  of  such  tax  is  so  computed.  The  tax  imposed,  as  herein  provided, 
shall  be  assessad,  levied  and  collected  in  the  manner  prescribed  by  law,  and 
shall  b?  paid  by  the  several  county  treasurers  into  the  treasury  of  the  state. 
The  proceeds  of  such  tax  shall  be  invested  by  the  comptroller  under  the  di- 
rection of  the  commissioners  of  the  canal  fund  and  together  with  the  interest 
arising  therefrom,  any  premiums  received  on  the  sale  of  said  bonds,  and 
interest  accruing  on  deposits  of  money  received  from  the  sale  of  said  bonds, 
or  from    miscellaneous    sources,    shall    constitute    a    sinking   fund,    tohich    is 


98 

hereby  created.  Said  fund  sliall  be  u^^ed  solely  for  the  purpose  of  paying 
the  principal  an  1  interest  of  bonds  issued  in  accordance  with  the  provisions 
of  tliis  act.  Provided,  however,  that  in  case  the  legislature  shall  set  apart  in 
any  fiscal  year  moneys  in  the  state  treasury  as  a  sinking  fund  to  pay  the 
int  rest  on  the  said  bunds  as  it  falls  due  and  to  pay  and  discharge  the  prin- 
cii)al  thereof,  and  such  moneys  shall  be  sullicient  to  provide  a  sum  equal  to 
the  amount  that  would  otherwise  have  been  raised,  as  hereinbefore  provided, 
in  such  fiscal  year,  for  such  sinking  fund,  c  direct  annual  tax  for  such  year 
shall  not  be  imposed  and  collected  as  required  hy  the  provision's  of  this  act. 
CAYUGA  AND  SENECA  CANALS. 

Laws  of  1909,  Chapter  391,  part  of  §  2  and  §  7. 
An  Act  making  provision  for  issuing  bonds  to  the  amount  of  not  to  exceed 
seven  million  d  illars  for  the  improvment  of  the  Cayuga  and  Seneca  canals, 
and  providing  for  a  submission  of  the  same  to  the  people  to  be  voted  upon 
at  the  general  election  to  be  held  in  the  year  nineteen  hundred  and  nine. 
There  is  hereby  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay, 
the  interest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay, 
and  sufficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds  within 
fifty  years  from  the  date  thereof.  The  rate  of  such  annual  tax  shall  be  four 
one-thousmdths  of  a  mill  on  each  dollar  of  valuation  of  real  and  personal 
property  in  this  state  subject  to  taxation,  for  each  and  every  one  million 
dollars,  or  fraction  thereof,  in  par  value  of  said  bonds  issued  under  this  act, 
and  outstanding  or  to  be  outstanding  during  the  fiscal  year  during  which  the 
amount  of  such  tax  is  computed.  The  legislature  shall  each  year  compvite 
tlie  amount  of  tax  required  as  above  specified  and  in  making  such  computa- 
tion sliall  include,  at  the  rate  above  mentioned,  such  bonds  as  will  be  re- 
quired to  be  issued  under  tiiis  act  during  the  fiscal  year  for  which  the  amount 
of  such  tax  is  so  computed.  The  tax  imposed  as  herein  provided,  shall  be 
assessed,  lavied  and  collected  in  the  manner  prescribed  by  law,  and  shall  be 
paid  by  tlile  several  county  treasurers  into  the  treasury  of  the  state.  The  pro- 
ceeds of  such  tax  shall  be  invested  by  the  comptroller  under  the  direction  of 
the  commissioners  of  the  canal  fund  and  together  with  the  interest  arising 
therefrom,  any  premiums  received  on  the  sale  of  said  bonds,  and  interest 
accruing  on  deposits  of  money  received  from  the  sale  of  said  bonds,  or  from 
miscellaneous  sources,  shall  constitute  a  sinking  fund,  which  is  hereby  created. 
Said  fund  shall  be  used  solely  for  the  purpose  of  paying  the  principal 
and  interest  of  bonds  issued  in  accordance  with  the  provisions  of  this  act. 
Provided,  liowever,  that  in  case  the  legislature  shall  set  apart  in 
any  fiscal  year  moneys  in  the  state  treasury  as  a  sinking  fund  to  pay  the 
interest  on  the  said  bonds  as  it  falls  due  and  to  pay  and  discharge  the  prin- 
cipal thereof,  and  such  moneys  shall  be  sullicient  to  provide  a  sum  equal 
to  the  amount  that  would  otherwise  have  been  raised,  as  hereinbefore  pro- 
vided in  such  fiscal  year  for  such  sinking  fund,  a  direct  annual  tax  for  such 
year  shall  not  be  imposed  and  collected  as  required  by  the  provisions  of  this 
act. 

§  7.  Any  surplus  arising  from  the  sale  of  bonds  and  the  sale  of  abandoned 
lands  over  and  above  the  cost  of  the  entire  work  of  the  improvement  of  the 
canals  as  herein  j)rovided  for  shall  be  applied  to  the  sinicing  fund  for  the 
payment  of   said   bonds. 


99 

Laws  of  igio,  Chapter  139,  part  of  §  2  and  §  4. 

An  Act  providing  for  the  issue  of  bonds  of  tlic  state  to  run  for  a  period 
of  fiftj'  years  in  lieu  of  bonds  heretofore  authorized  by  chapter  three  hun- 
dred and  ninety-one  of  the  laws  of  nineteen  hundred  and  nine,  but  not 
issued. 

There  is  herehy  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay 
the  interest  on,  each  bond  issued  itnder  this  act  as  it  falls  due,  and  to  pay 
and  sufficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds  icithin 
fifty  years  from  the  date  thereof.  The  rate  of  such  annual  tax  shall  be  five 
one-thousandths  of  a  mill  on  each  dollar  of  valuation  of  real  and  personal 
property  in  this  state  subject  to  taxation  for  each  and  every  one  million  dol- 
lars, or  fraction  thereof,  in  par  value  of  said  bonds  issued  under  this  act,  and 
outstanding  or  to  be  outstanding  during  the  fiscal  year  during  which  the 
amount  of  such  tax  is  computed.  The  legislature  shall  each  year  compute  the 
amount  of  tax  required  as  above  specified,  and  in  making  such  computation 
shall  include,  at  the  rate  above  mentioned,  such  bonds  as  will  be  required 
to  be  issued  under  this  act  during  the  fiscal  year  for  which  the  amount  of 
such  tax  is  so  computed.  The  tax  imposed,  as  herein  provided,  shall  be 
assessed,  levied  and  collected  in  the  manner  prescribed  by  law,  and  shall  be 
paid  by  the  several  county  treasurers  into  the  treasury  of  the  state.  The  pro- 
ceeds of  such  tax  shall  be  invested  by  the  comptroller  under  the  direction 
of  the  commissioners  of  the  canal  fund  and  together  with  the  interest  arising 
therefrom,  any  premiums  received  on  the  sale  of  said  bonds  and  interest  accru- 
ing on  deposits  of  money  received  from  the  sale  of  said  bonds,  or  from  mis- 
cellaneous sources,  shall  constitute  a  sinlcing  fund,  which  is  hereby  created. 
Said  fund  shall  be  used  solely  for  the  purpose  of  paying  the  principal  and 
interest  of  bonds  issued  in  accordance  with  the  provisions  of  this  act.  Pro- 
vided, however,  that  in  case  the  legislature  shall  set  apart  in  any  fiscal  year 
moneys  in  the  state  treasury  as  a  sinking  fund  to  pay  the  interest  on  the 
said  bonds  as  it  falls  due  and  to  pay  and  discharge  the  principal  thereof, 
and  such  moneys  shall  be  sufficient  to  provide  a  sum  equal  to  the  amount  that 
would  otherwise  ha^'e  been  raised,  as  hereinbefore  provided,  in  such  fiscal  year 
for  such  sinking  fund,  a  direct  annual  tax  for  such  year  shall  not  be  imposed 
and  collected  as  required  by  the  provisions  of  this  act. 

§  4.  Any  surplus  arising  from  the  sale  of  bonds,  the  sale  of  abandoned 
lands,  or  from  the  sale  of  buildings,  or  other  property  upon  lands,  condemned 
or  otherwise  purchased,  for  purposes  of  said  improvement,  over  and  above 
the  cost  of  the  entire  work  of  the  said  improvement  of  the  canal,  shall  be 
applied  to  the  sinking  fund  for  the  payment  of  the  said  bonds. 

BARGE  CANAL  TERMINALS. 

Laws  of  191 1,  Chapter  746,  part  of  §  3  and  §  19. 
An  Act  making  provision  for  issuing  bonds  to  the  amount  of  not  to  exceed 
nineteen  million  eight  hundred  thousand  dollars  for  the  purpose  of  furnish- 
ing proper  terminals  and  facilities  for  barge  canal  traffic,  including  the 
acquisition  and  interchange  of  property  therefor,  with  a  view  to  improving 
and  fostering  the  commerce  of  the  state,  and  providing  for  a  submission 
of  the  same  to  the  people  to  be  voted  upon  at  the  general  election  to  be 
held  in  the  year  nineteen  hundred  and  eleven. 


100 

There  is  lierehy  imposed  a  direct  annual  tax  to  pay  and  sufficient  to  pay 
the  interest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay 
and  sufficient  to  pay  and  discharge  the  pi-incipal  of  each  of  such  bonds  within 
thirty  years  from  the  date  thereof.  The  rate  of  sueli  annual  tax  shall  be 
six  one-thousandths  of  a  mill  on  eacli  dollar  of  valuation  of  real  and  personal 
property  in  this  state  subject  to  taxation  for  each  and  every  one  million  dollars, 
or  fraction  thereof,  in  par  value  of  said  bonds  issued  under  this  act,  and  out- 
standing or  to  be  outstanding  during  the  fiscal  year  during  which  the  amount 
of  such  tax  is  computed.  The  tax  imposed,  as  herein  provided,  shall  be 
assessed,  levied  and  collected  in  the  manner  prescribed  by  law,  and  shall  be 
paid  by  the  several  county  treasurers  into  the  treasury  of  the  state.  The  pro- 
ceeds of  such  tcuD  shall  be  invested  by  the  comptroller  under  the  direction  of 
the  commissioners  of  the  canal  fund  and  together  with  the  interest  arising 
therefrom,  any  premiums  received  on  the  sale  of  said  bonds,  and  interest  ac- 
cruing on  deposits  of  money  received  from  the  sale  of  said  bonds  or  from  mis- 
cellaneous sources  shall  constitute  a  sinking  fund  which  is  hereby  created. 
Said  fund  shall  be  used  solely  for  the  purpose  of  paying  the  principal  and 
interest  of  bonds  issued  in  accordance  with  the  provisions  of  this  act. 

§  19.  Any  surplus  arising  from  the  sale  of  bonds  over  and  above  the  cost 
of  the  work  herein  provided  for  shall  be  applied  to  the  sinking  fund  for  the 
payment  of  said  bonds. 

IMPROVEMENT  OF  HIGHWAYS. 

Laws  of  1906,  Chapter  469,  §  3  and  part  of  §  4. 

An  Act  to  provide  for  issuing  of  bonds  of  the  state  for  the  improvement  of 
higliways,   and   making   an   appropriation   therefor. 

§  3.  There  shall  be  two  classes  of  bonds  for  highway  improvement,  known 
as  class  A  and  class  B,  the  former  being  redeemable  from  a  sinking  fund 
maintained  by  the  state  as  hereinafter  provided,  and  the  latter  redeemable 
from  redemption  fund  provided  by  the  counties  and  towns  wherein  the  pro- 
ceeds of  such  bonds  have  been  applied  to  the  improvement  of  the  higliways. 

There  is  hereby  imposed  for  each  year  hereafter  until  all  the  class  A 
bonds  issued  under  the  authority  of  this  act  shall  be  due,  an  annual  tax  of 
fifty-five  ten-thousandths  of  a  mill  upon  each  dollar  of  real  and  personal 
property  in  this  state  subject  to  taxation  for  each  and  every  one  million  dol- 
lars or  part  thereof  in  par  value  of  said  bonds  issued  and  outstanding  in  any 
of  said  fiscal  years.  The  annual  amount  of  such  tax  shall  be  computed  by 
the  comptroller  and  shall  be  assessed,  levied  and  .collected  annually  in  each 
of  such  years  in  the  manner  prescribed  by  law  for  the  assessment,  levy  and 
collection  of  state  taxes  and  shall  be  paid  by  the  several  county  treasurers 
into  the  treasury  of  the  state  and  the  proceeds  of  such  taxes  after  paying 
the  interest  due  upon  such  outstanding  bonds  shall  be  invested  by  the  comp- 
troller in  securities  in  which  he  is  authorized  by  law  to  invest  the  trust  and 
sinlcing  funds  of  the  state  and  together  icith  the  interest  arising  therefrom 
and  any  premiums  received  from  said  bonds  and  interest  accruing  on  deposits 
of  money  received  from  the  sale  of  such  bonds  shall  constitute  a  sinking  fund 
which  is  hereby  created  for  the  redemption  of  such  bonds.     Such  sinking  fund 


y    •»  ,  *   o     , 


101 

shall  be  used  solely  for  the  purpose  of  paying  the  principal  and  interest  on 
class  A  bondn  issued  in  accordance  with  the  provisions  of  this  act,  provided, 
howpver,  that  in  ease  the  legislature  shall  hereafter  in  any  fiscal  year  appro- 
priate out  of  funds  in  the  treasury  moneys  to  provide  a  sum  equal  to 
tl'.e  amount  whicli  would  otlierwise  have  been  raised  as  hereinbefore  provided 
in  such  fiscal  year  for  such  sinking  fund,  no  direct  annual  tax  for  such  year 
sJiall  he  imposed  and  collected  as  before  provided. 

Laws  of  1907,  Chapter  718,  part  of  §  4. 
Ax  Act  to  amend  chapter  four  hundred  and  sixty-nine  of  the  laws  of  nine- 
teen hundred  and  six,  entitled  "An  act  to  provide  for  issuing  of  bonds  of  the 
state  for  the  improvement  of  highways,  and  making  appropriation  there- 
for," generally. 

There  is  hereby  imposed  upon  the  real  and  personal  property  subject  to 
taxatioti  in  this  state,  an  annual  tax  of  two  cents  for  each  one  dollar  of  bonds 
issued  under  the  provisions  of  this  act  and  outstanding,  to  provide  a  sinking 
fund  to  redeem  said  bonds  at  maturity,  and  in  like  manner,  a  tax  of  four 
cents  for  each  one  dollar  of  bonds  issued  and  outstanding  which  bear  interest 
at  the  rate  of  four  per  centum  per  annum  to  provide  for  the  payment  of  in- 
terest upon  said  bonds;  a  tax  of  three  and  one-half  cents  for  each  one  dollar 
of  bonds  issued  and  outstanding  which  hear  interest  at  the  rate  of  three  and 
one-half  per  centum  per  annum  to  provide  for  the  payment  of  interest  upon 
such  bonds  and  a  tax  of  three  cents  for  each  one  dollar  of  bonds  issued  and 
outstanding  ichich  bear  interest  at  the  rate  of  three  per  centum  per 
annum  to  provide  for  the  payment  of  interest  upon  such  bonds. 
The  amount  of  such  tax  shall  be  annually  computed  by  the  comp- 
troller and  shall  be  assessed,  levied  and  collected  in  eacb  of  such  years 
ill  the  manner  prescribed  by  law  for  the  assessment,  levy  and  collection  of 
state  taxes  and  shall  be  paid  by  the  several  county  treasurers  into  the 
treasury  of  the  state  at  the  times  and  in  the  manner  prescribed  by  law  for 
the  payment  of  state  taxes  to  the  state  treasurer  and  the  proceeds  of  such 
taxes  after  paying  the  interest  due  upon  such  outstanding  bonds  shall  be 
invested  by  the  comptroller  in  securities  in  which  he  is  authorized  by  law  to 
invest  the  trust  and  sinking  funds  of  the  state.  Such  sinking  fund  shall  be 
used  solely  for  the  purpose  of  paying  the  principal  on  the  bonds  issued  in 
a  cordance  with  the  provisions  of  this  act,  provided,  however,  that  in  case 
tie  leg.sliture  shall  hereafter  in  any  fiscal  year  appropriate  out  of  funds 
in  the  treasury  moneys  to  provide  a  sum  equal  to  the  amount  which  would 
otherwise  have  been  raised  by  taxation  as  hereinbefore  provided  in  such  fiscal 
year  for  such  sinking  fund  and  interest  on  such  bonds,  no  direct  state  tax 
for  such  year  shall  be  imposed  or  collected  as  above  provided,  and  provided 
also  that  when  the  payments  to  the  sinking  fund  of  premiums  upon  bonds 
sold,  interest  upon  investments  made  from  the  sinking  fund  and  the  moneys 
received  from  the  towns  and  counties  as  and  for  their  share  of  the  cost  of 
highways  improved  icdth  funds  made  available  under  the  provisions  of  this 
act,  shall  amount  to  a  sum  equal  to  the  amount  of  any  annual  tax  herein  re- 
quired to  be  levied  to  provide  payment  of  the  interest  upon  bonds  outstanding 
and  the  annual  payment  to  the  sinking  fund,  then  the  comptroller  shall  make 


102 

a  special  recommendation  to  the  legislature  ashiinj  that  the  legislature  shall 
direct  that  so  much  of  the  said  a<'cumulation  as  may  he  suffieiejit  to  pay  the 
interest  due  in  thnt  year  and  provide  the  amount  due  to  the  sinking  fund  shall 
be  used  for  stieh  purposes  and  that  no  state  tax  shall  be  levied  for  that  year 
as  herein  provided. 

IMPROVEMENT  OF  HIGHWAYS  1912. 
Laws  of  1912,  Chapter  298,  part  of  §'  2  and  §  8. 
Ax  Act  making  provision  for  issuing  bonds  to  tlio  amount  of  not  to  exceed 
tifty  mill  on  dollars  for  tlie  purpose  of  constructing  and  improving  state 
and  county  higiiwaya,  and  providing  for  a  submission  of  the  same  to  the 
people  to  be  voted  upon  at  the  general  election  to  be  held  in  the  year 
nineteen  hundred  and  twelve. 

There  is  hereby  imposed  a  direct  annual  tax  to  pay  and  sufhcient  to  pay 
the  inttjrest  on  each  bond  issued  under  this  act  as  it  falls  due,  and  to  pay 
and  sufficient  to  pay  and  discharge  the  principal  of  each  of  such  bonds  within 
tifty  years  from  the  date  thereof.  The  rate  of  such  annual  tax  shall  be  five 
one-thousandths  of  a  mill  on  each  dollar  of  valuation  of  real  and  personal 
property  in  this  state  subject  to  taxation,  for  each  and  every  one  million 
dollars,  or  fraction  thereof,  in  par  value  of  said  bonds  issued  under  this 
act,  and  outstanding  or  'to  be  outstanding  during  the  fiscal  year  during 
whicli  the  amount  of  such  tax  is  computed.  The  tax  imposed,  as  herein  pro- 
vided, shall  be  assessed,  levied  and  collected  in  the  manner  prescribed  by 
law,  and  shall  be  paid  by  the  several  county  treasurers  into  the  treasury  of 
the  state.  The  proceeds  of  such  tax  shall  be  invested  by  the  comptroller  in 
securities  in  which  he  is  authorized  by  law  to  invest  the  trust  and  sinking 
funds  of  the  state,  and  together  with  the  interest  arising  therefrom,  any  pre- 
miums received  on  the  sale  of  said  bonds,  and  interest  accruing  on  deposits 
of  money  received  from  the  sale  of  said  bonds  or  from  miscellaneous  sources 
shall  constitute  a  sinking  fund  which  is  hereby  created,  feaid  fund  shall  be 
used  solely  for  the  purpose  of  paying  the  principal  and  interest  of  bonds  issued 
in  accordance  with  the  provisions  of  this  act. 

§  8.  Any  surplus  arising  from  the  sale  of  bonds  over  and  above  the  cost 
of  the  work  herein  provided  for  shall  be  applied  to  the  sinking  fund  for  the 
payment  of  said  bonds. 

(Note. — There  have  been  no  bonds  issued  under  this  law.) 

PALISADES  INTERSTATE  PARK. 
Laws  of  1910,  Chapter  363,  part  of  §  2. 
An  Act  making  provision  for  issuing  bonds  to  an  amount  not  exceeding  two 
million  five  hundred  thousand  dollars,  for  the  use  of  the  commissioners  of 
the  Palisades  Interstate  park  in  the  extension  and  improvement  of  the 
park  under  their  jurisdiction  as  from  time  to  time  such  park  may  exist, 
and  providing  for  a  submission  of  the  same  to  the  peoj)le,  to  be  voted  upon 
at  the  general  election  to  be  held  in  the  year  nineteen  hundred  and  ten. 

There  is  hereby  imposed  for  each  year  after  this  act  goes  into  effect,  until 
provision  is  fully  made  for  the  payment  of  the  interest  and  principal  of  said 
bonds,  a  direct  a7inual  tax  sufficient  to  pay  the  interest  on  such  bonds,  or 


103 

the  debt  represented  by  such  bonds,  as  it  falls  due,  and  also  to  pay  and  dis- 
charge the  principal  of  such  bonds,  or  the  debt  represented  thereby,  vnthin 
fifty  years  from  the  time  of  the  {■ssuance  of  such  bonds,  to  tcit :  A  ta<c  of  one 
hundred  and  t:ccnty-five  ten-thousandths  of  a  mill  upon  each  dollar  of  valua- 
tion of  real  and  personal  property  in  this  state,  subject  to  taxation,  which 
taxes  shall  be  assessed,  levied  and  collected  by  the  annual  assessment  and 
collection  of  taxes  in  each  of  said  years  in  the  manner  prescribed  by  law, 
and  shall  be  paid  by  the  several  county  treasurers  into  the  treasury  of  the 
state.  The  proceeds  of  said  tax  shall  be  invested  by  the  comptroller,  and 
together  with  the  interest  arising  therefrom,  any  premiums  received  on  the. 
sale  of  said  bonds  and  interest  accruing  on  deposits  of  money  received  from 
the  sale  of  said  bonds  or  from  miscellaneous  sources,  if  any,  shall  constitute 
a  sinking  fund  ichich  is  hereby  created  for  the  payment  of  the  interest  on  and 
the  extinguishment  of  the  ptHncipal  of  such  bonds  or  the  debt  represented 
thereby.  Such  sinking  fund  shall  be  separately  kept  and  safely  invested  by 
the  comptroller  and  together  with  the  interest  arising  therefrom  shall  be 
devoted  and  used  solely  for  the  purpose  of  paying  the  principal  and  interest 
of  bonds  issued  in  accordance  with  the  provisions  of  this  act  as  aforesaid, 
and  shall  not  be  appropriated  or  used  in  any  other  manner  whatever;  pro- 
vided, however,  that  ichcn  such  sinking  fund  shall  equal  in  ainoutit  the  debt 
for  tcliivh  it  was  created,  no  further  direct  tax  shall  be  levied  on  account 
of  said  sinking  fund  and  the  tax  hereinbefore  provided  for  shall  be  reduced 
to  an  amount  equal  to  the  accruing  interest  on  said  debt. 

Laws  of  191 1,  Chapter  868,  §  i. 
An  Act  to  provide  ways  and  means  for  the  isupport  of  government. 

There  shall  be  imposed,  for  the  fiscal  year  beginning  on  the  first  day  of 
October,  nineteen  hundred  and  eleven,  on  each  dollar  of  real  and  personal 
property  of  this  state  subject  to  taxation,  taxes  for  the  purposes  hereinafter 
mentioned,  which  taxes  shall  be  assessed,  le''ied  and  collected  by  the  annual 
assessment  and  collection  of  taxes  of  that  year  in  the  manner  prescribed  by 
law,  and  shall  be  paid  by  the  several  county  treasurers  into  the 
treasury  of  this  state,  to  be  held  by  the  treasurer,  to  b^  applied  to  the 
purposes  specified;  that  is  to  say:  For  the  general  fund,  and  for  the  pay- 
ment of  tliose  claims  and  demands  ichich  shall  constitute  a  lawful  charge 
upon  that  fund  during  the  fiscal  year  commencing  October  first,  nineteen 
hundred  and  eleven,  one  hundred  ninety-one  one-thousandths  of  a  mill;  for  the 
annual  contribution  to  the  canal  debt  sinking  fund,  pursuant  to  the  pro^^ 
visions  of  chapter  one  hundred  and  forty-seven  of  the  laws  of  nineteen  hun- 
dred and  three,  twenty-four  one-thousandths  of  a  mill;  for  the  annual  con- 
tribution to  the  canal  debt  sinking  fund  pursuant  to  chapter  one  hundred  and 
forty-seven  of  the  laws  of  nineteen  hundred  and  three  and  chapter  three 
hundred  and  two  of  the  laws  of  nineteen  hundred  and  six,  as  amended  by 
chapter  two  hundred  and  forty-one  of  the  laws  of  nineteen  hundred  and  nin^ 
eighty-four  one-thousandths  of  a  mill;  for  the  annual  contribution  to  the 
canal  debt  sinking  fund  pursuant  to  chapter  one  hundred  and  forty-seven  of 
the  laws  of  nineteen  hundred  and  three,  chapter  three  hundred  and  two  of 
the  laws  of  nineteen  hundred  and  six  as  amended  by  chapter  two  hundred 


104 

and  forty-one  of  the  laxos  of  nineteen  hundred  and  nine  and  chapter  sixty-six 
of  the  laios  of  nineteen  hundred  and  ten,  ten  onc-hundredths  of  a  mill;  for 
the  annual  contrihutioi  to  the  eanal  debt  sinking  fund,  pursuant  to  chapter 
three  hundred  and  ninety-one  of  the  laws  of  nineteen  hundred  and  nine,  and 
chapter  one  hundred  and  thirty-nine  of  the  laws  of  nineteen  hundred  and  ten, 
fifteen  one-thousandths  of  a  mill;  for  the  annual  contribution  to  the  highway 
improvement  sinking  fund,  pursuant  to  chapter  four  hundred  and  sixty-nine 
of  the  laws  of  nineteen  hundred  and  six,  fifty-five  ten-thousandths  of  a  mill; 
fur  the  annual  contribution  to  the  highway  improvement  sinking  fund,  pursu- 
ant to  chapter  four  hundred  and  sixty-nine  of  the  laws  of  nineteen  hundred 
and  six,  as  amended  by  chapter  seven  hundred  and  eighteen  of  the  laws  of 
nineteen  hundred  and  seven,  one-hundred  sixty-eight  one-thousandths  of  a 
mill;  for  the  annual  contribution  to  Palisades  Interstate  Park  debt  sinking 
fund,  pursuant  to  chapter  three  hundred  and  siwty-three  of  the  laws  of  nine- 
teen hundred  and  ten,  one  hundred  twenty-five  ten-thousandths  of  a  mill. 

Opinion. 

In  the  foregoing  statement,  tlie  effort  has  been  made  to  present 
a  faithful  record  of  the  various,  sinking  funds  now  maintained 
by  the  State,  the  present  condition  of  those  funds,  the  provisions 
of  the  Constitution  of  the  State  requiring  them  and  the  several 
statutes,  unfortunately  not  all  parts  of  an  harmonious  whole,  relat- 
ing to  them. 

The  funds  and  their  condition  are  the  subjects  to  be  treated. 
The  provisions  of  the  Constitution  furnish  the  requirement  and 
the  reason  for  the  creation  and  for  the  existence  of  the  funds.  The 
statutes  are  regulative  merely  and  are  subject  to  change,  altera- 
tion, correction,  amendment  or  repeal,  by  the  Legislature  now  in 
session,  for  the  Legislature  in  session  one  year  may  always  change, 
alter,  correct,  amend  or  repeal  its  own  enactments  or  the  enact- 
ments of  a  previous  session,  except  only  in  so  far  as  it  is  limited 
therein  by  the  express  provisions  or  by  the  implied  prohibitions  of 
the  Constitution.  It  is,  therefore,  unnecessary  to  analyze  or  to 
attempt  to  harmonize  the  statutes  mentioned,  for  they  are  not 
controlling  uj)on  the  action  of  the  Legislature  at  its  present 
session. 

The  inquiry  is,  thus,  narrowed  to  the  consideration  of  the  ques- 
tion as  to  whether  or  not  the  abnormal  condition  of  the  sinking 
funds  is  the  unavoidable  result  of  the  provisions  of  the  Constitu- 
tion relating  to  them. 

For  the  useful  purposes  of  this  discussion,  only  two  classes  or 
kinds  of  sinking  funds,  provided  for  in  the  Constitution,  need  be 
considered,  viz:  (1)  The  canals  sinking  funds;  and  (2)  the  higli- 
ways  sinkinc:  funds. 


105 

Relating  to  canals  sinking  funds,  the  provisions  of  the  ConstitU' 
tion  are  found  in  sections  4,  10  and  11  of  article  VII.  Section  12 
of  the  same  article  relates  exclusively  to  the  highways  sinking 
funds.  Section  5  of  this  article  is  general,  and  applies  to  all  sink- 
ing funds  required  by  the  provisions  of  the  Constitution  to  be 
created  and  maintained.     It  is  not  important  here. 

Canals  Sinking  Funds. 

Section  10  of  article  VII  of  the  Constitution,  so  far  as  it  bears 
upon  this  discussion,  refers  to  section  4  of  the  same  article  for  the 
mode  in  which  a  debt  within  its  purpose  may  be  authorized.  Its 
provisions,  therefore,  furnish  no  basis  for  argument  and  require 
no  comment. 

Section  11  of  article  VII  is  useful  to  the  discussion  only  because 
of  its  provisions  which  allow  an  appropriation  from  funds  in  the 
treasury  to  take  the  place  of  moneys  provided  by  section  4  to  be 
raised  by  direct  tax,  and,  thus,  in  the  case  of  such  appropriation, 
allows  a  direct  tax  to  be  avoided. 

Section  4  of  article  VII,  therefore,  contains  the  provisions 
which  require  consideration,  viz:  That  moneys  required  to  pay 
the  debt  authorized  shall  be  provided  by  means  of  "  a  direct 
annual  tax  "  (or  by  appropriation  as  provided  in  section  11)  "  to 
pay,  and  sufficient  to  pay,  the  interest  on  such  debt  as  it  falls  due, 
and  also  to  pay  and  discharge  the  principal  of  such  debt  within 
fifty  years  from  the  time  of  the  contracting  thereof.  *  *  * 
In  case  the  Legislature  increase  the  rate  of  interest  upon  any  such 
debt,  or  part  thereof,  it  shall  impose  and  provide  for  the  collection 
of  a  direct  annual  tax  to  pay  and  sufficient  to  pay  the  increased 
or  altered  interest  on  such  debt  as  it  falls  due  and  also  to  pay  and 
discharge  the  principal  of  such  debt  within  fifty  years  from  the 
time  of  the  contracting  thereof^  and  shall  appropriate  annually  to 
the  sinhing  fund  moneys  in  amount  sufficient  to  pay  such  interest 
and  pay  and  discharge  the  principal  of  such  debt  when  it  shall 
hecome  due  and  payable/' 

Thus  the  purpose  is  clearly  expressed  to  provide  a  sinking  fund 
for  the  payment  of  the  interest  on  the  debt  when  due,  and  for  the 
payment  of  the  principal  of  the  debt,  when  it  becomes  due.  As  if 
to  emphasize  the  purpose  to  create  a  sinking  fund  only  sufficient 
to  pay  the  interest  and  the  principal  of  the  debt,  and  not  to  create 
a  fund  larger  than  sufficient  to  pay  the  debt  at  maturity  and  the 
interest  as  it  accrues,  the  section  contains  this  significant  restric- 


lOG 

tion :  "When  any  sinking  fund  created  under  this  section  shall 
equal  in  amount  the  debt  for  which  it  luas  created,  no  further 
direct  tax  shall  be  levied  on  account  of  said  sinking  fund,  and  the 
Legislature  shall  reduce  the  tax  to  an  amount  equal  to  the  accru- 
ing interest  on  such  debt."  Therefore,  the  purpose  clearly  is  to 
provide  a  sinking  fund,  by  yearly  contributions  thereto,  sufficient 
to  pay  the  correct  accruing  interest  upon  the  debt  and  to  propor- 
tionately build  up  the  principal  of  the  fund,  so  that,  at  the  ma- 
turity of  the  debt,  the  amount  required  to  pay  and  discharge  it 
shall  be  on  hand  in  the  sinking  fund.  As  we  have  seen,  in  the 
portion  of  the  section  last  quoted,  special  care  was  taken  to  pro- 
vide against  the  accumulation  of  an  amount  greater  than  the 
amount  required  to  pay  the  interest  on  the  debt  from  time  to  time 
as  it  became  due  and  the  principal  of  the  debt  at  maturity.  This 
provision  cannot  be  otherwise  construed  than  as  an  efficient  pre- 
ventative against  the  accumulation,  by  error,  mistake  or  otherwise, 
of  a  greater  fund  than  the  payment  of  the  debt  and  the  interest 
upon  it  required.  It  effectively  provides  a  corrective  against  error 
or  mistake  in  the  accumulation  of  the  fund,  which  might  naturally 
and  almost  unavoidably  arise  from  a  conservative  method  of 
amortizing  the  debt,  and  which  would  naturally  show  in  the  years 
immediately  preceding  the  maturity  of  the  debt. 

Obviously,  it  was  not  the  intention  to  authorize  a  debt  to  run 
for  fifty  years  and  to  provide  the  necessary  funds  to  pay  the  debt 
in  thirty-one  years,  to  use  the  illustration  pointedly  made  in 
the  report  of  Mr.  Cameron.  There  is  no  reason  in  such  a  prop- 
osition. If  it  was  the  intention  of  the  Constitution  to  defer  the 
payment  of  the  debt  for  fifty  years,  and  to  accimiulate  a  fund 
for  the  payment  of  the  debt  at  its  maturity  in  thirty  years,  the 
Constitution  w^ould  unquestionably  have  so  declared,  for,  other- 
wise, it  would  be  unreasonable  to  infer  such  an  intention.  The 
natural  inference  to  be  drawn  from  a  provision  deferring  the  pay- 
ment of  a  public  debt  for  fifty  years  is  that  it  is  deemed  wise 
public  policy,  in  the  interest  and  for  the  convenience  of  the  tax- 
payers, to  so  defer  the  payment.  If  in  connection  with  the 
deferring  of  the  payment  of  the  debt  for  fifty  years,  provision  is 
made  for  the  accumulation  of  a  fund  annually  for  the  payment  of 
the  debt  at  maturity,  the  natural  inference  is  that  the  accumu- 
lation shall  be  proportionate  during  the  years  during  which  th" 
payment  is  deferred.  Otherwise,  the  fund  to  pay  the  debt  at  the 
end  of  fifty  years  might  be  accumulated  in  forty  or  thirty  or 


107 

twenty  or  ten  years  or  in  a  single  year.  It  might  be  accumu- 
lated in  a  large  proportion  one  year  and  in  a  small  proportion  the 
next,  and,  in  this  and,  possibly,  other  ways,  wide  opportunity 
■would  be  afforded  for  juggling  with  the  funded  debts  for  po- 
litical or  other  ulterior  purposes.  If  the  Constitution  intended 
this  loose  and  questionable  policy  with  regard  to  its  funded  debts 
and  their  liquidation,  and  did  not  intend  the  natural,  safe  and 
convenient  policy  of  providing  for  deferring  the  time  of  payment 
and  the  accumulation  of  a  fund  for  payment  at  the  maturity  of 
the  debt  through  proportionate  annual  accumulations,  the  Consti- 
tution, as  before  suggested,  would  have  so  declared.  In  the  ab- 
sence of  specific  and  plain  declaration  to  that  effect,  the  Consti- 
tution, in  its  provisions  in  question,  should  be  read  and  under- 
stood as  providing  the  natural,  safe  and  convenient  policy  of 
amortizing  its  funded  debts. 

My  conclusion,  therefore,  is  that  the  excess  accumulations  in 
the  canals  sinking  funds  are  not  the  fault  of  the  Constitution, 
or  its  provisions,  but  are,  rather,  the  outgrowth  of  an  erroneous 
and  mistaken  policy  pursued  by  those  who  have  managed  this 
feature  of  the  state's  business. 

Highways  Sinking  Funds. 

Section  12  of  article  VII  of  the  Constitution  contains  the 
only  constitutional  provisions  upon  the  subject  of  highways  sink- 
ing funds.  With  regard  to  the  debts  authorized,  the  provision  for 
payment  and  sinking  fund  is  as  follows: 

"  The  payment  of  the  annual  interest  on  such  debt  and  the 
creation  of  a  sinking  fund  of  at  least  two  per  centum  per  annum 
to  discharge  the  principal  at  maturity  shall  be  provided  by 
general  laws." 

It  is  instructive  to  note  the  provisions  of  the  general  laws 
bearing  upon  the  subject.     There  are  only  two. 

Chapter  469  of  the  Laws  of  1906  provided  for  the  imposition 
"  each  year  hereafter "  until  the  bonds  issued  under  the  act 
"  shall  be  due,  an  annual  tax  of  fiftv-five  ten-thousandths  of  a 
mill  upon  each  dollar  of  real  and  personal  property  in  this  state 
subject  to  taxation  for  each  and  every  one  million  dollars  or 
part  thereof  in  par  value  of  said  bonds  issued  and  outstanding 
in  any  of  said  fiscal  years." 

It  further  provided  for  the  payment  of  the  interest  on  the 


108 

fund  for  die  rccloinption  of  tho  bonds,  sncli  sinking  fund  to  bo 
made  up  of  the  proceeds  of  tho  taxes  imposed,  less  tho  interest 
on  tlie  bonds,  interest  earned  on  the  investment  of  such  bahmoo 
of  said  proceeds,  premiums  on  the  sale  of  the  bonds  and  interest 
accruing  on  deposits  of  money  received  from  the  sale  of  the 
bonds. 

It  also  provided  for  tho  substitution  of  an  appropriation  of 
funds  from  the  state  treasury,  in  the  amount  of  the  tax  imposed, 
for  the  tax,  and  in  the  event  of  such  appropriation,  the  direct 
tax  was  forbidden. 

Chapter  718  of  the  Laws  of  1907  amended  Chapter  469  of 
the  Laws  of  1906  by  providing,  instead  of  the  tax  imposed  by  the 
act  of  1906,  a  direct  "  annual  tax  of  two  cents  for  each  one 
dollar  of  bonds  issued  *  *  *  and  outstanding,  to  provide 
a  sinking  fmid  to  redeem  said  bonds  at  maturity.  "  It,  then, 
provided  for  the  raising  of  the  interest  at  the  several  rates  carried 
in  the  bonds. 

The  proceeds  of  the  taxes,  less  the  interest  on  the  bonds,  were 
required  to  be  invested  and  constituted  the  sinking  fund. 

In  case  the  Legislature,  in  any  fiscal  year,  should  appropriate 
an  amount  equal  to  the  amount  of  the  tax,  a  direct  state  tax  was 
forbidden. 

Then  the  act  contains  this  provision :  "  When  the  payments 
to  the  sinking  fund  of  premiums  upon  bonds  sold,  interest  upon 
investments  made  from  the  sinking  fund  and  the  moneys  received 
from  the  towns  and  counties  as  and  for  their  share  of  the  cost 
of  highways  *  *  *  shall  amount  to  a  sum  equal  to  the 
amount  of  any  annual  tax  herein  required  to  be  levied  to  provide 
payment  of  the  interest  upon  bonds  outstanding  and  the  annual 
pa}Tnent  to  the  sinking  fund,  then  the  comptroller  shall  make 
a  special  recommendation  to  the  Legislature  asking  that  the 
Legislature  shall  direct  that  so  much  of  the  said  accmnulation 
as  may  be  sufficient  to  pay  the  interest  due  in  that  year  and 
provide  the  amount  due  to  the  sinking  fund  shall  be  used  for  such 
purposes  and  that  no  state  tax  shall  be  levied  for  that  year  as 
herein  provided." 

It  is  very  evident  that  the  Act  of  1907  was  intended  to  correct 
the  policy  of  the  Act  of  1906  with  regard  to  the  payment  of  the 
interest  and  the  creation  of  the  sinking  fund,  and  to  require  the 
comptroller  to  recommend  to  the  Legislature,  when  the  sui'plus 
accumulations  Mere  sufficient,  that  such  surplus  be  used  to  pay 


109 

tlie  interest  and  contribute  to  the  sinking  fund  for  the  year  and 
that  a  tax  be  not  imposed  for  that  year.  Thus,  the  effort  seems 
to  have  been  to  keep  the  sinking  fund  do\vn  to  an  accumuhition  of 
2  per  cent,  per  annum  on  an  indefinite,  inaccurate  and  indis- 
tinct amortizing  method.  Notwithstanding  this  effort,  the  high- 
ways sinking  fimds  now  exceed  by  $3,394,395.30  the  sum  neces- 
sary to  be  contained  therein  to  meet  the  requirements  of  the  Con- 
stitution.    This  result  is  conclusive  evidence  of  eiTor. 

The  provisions  of  the  Constitution  for  the  payment  of  the  in- 
terest and  for  the  creation  of  a  sinking  fund  for  the  payment  of 
the  principal  of  the  highway  debt  at  maturity,  while  differing 
from  the  provisions  in  those  regards  in  reference  to  the  canal 
debt,  are,  when  properly  interpreted,  without  diflSculty  of  appli- 
cation to  accomplish  their  plain  purpose. 

Here,  as  with  the  canal  funds,  it  was  the  purpose  to  provide 
for  the  payment  of  the  annual  interest  upon  the  deferred  debt 
and  to  accumulate  proportionately  through  the  life  of  the  bonds 
a  fund  which,  at  the  maturity  of  the  debt,  would  pay  it. 

The  Constitution  requires  provision  to  be  made  for  the  pay- 
ment of  the  annual  interest  on  the  debt  and  the  creation  of  a 
sinking  fund  of  at  least  ^  per  cent,  per  annum  to  discharge 
the  principal  of  the  debt  at  its  maturity.  Thus  separate  pro- 
vision is  required  to  be  made  for  the  payment  of  the  interest  and 
for  the  sinking  fund,  which  is  intended  to  pay  the  principal. 
The  deferred  period  of  the  debt  is  fifty  years.  The  minimum 
per  centimi  is  2  per  cent.  Tw^o  per  cent,  of  the  principal 
put  aside  in  each  year  will  make  100  per  cent.,  or  the  entire 
principal,  in  fifty  years.  But,  by  the  provisions  of  section  5  of 
article  VII  of  the  Constitution,  this  sinking  fund  must  be  in- 
vested, and  that  investment  produces  an  income.  There  is  no 
provision  that  the  income  from  the  sinking  fund  shall  become 
a  part  of  the  sinking  fund.  It  is  not  necessary  that  it  shall  be- 
come a  part  of  the  sinking  fund,  for  the  minim.ura  per  centiun 
provides  a  sinking  fund  which,  at  the  maturity  of  the  bonds,  with- 
out the  addition  of  any  of  the  income  from  its  investment,  will 
amount  precisely  to  the  principal  of  the  debt  and  will  discharge 
it.  The  purpose  of  the  Constitution  is  plainly  stated  to  be  the 
payment  of  the  annual  interest  on  the  bonds,  and  the  creation  of 
a  sinking  fund  to  pay  and  discharge  the  principal  of  the  debt  at 
its  maturity.  There  is  no  purpose  manifested  to  accumulate 
more  money   than   the   amounts   necessary   for   these   payments. 


110 

That  is  certain.  Theroforo,  this  phiin  and  certain  purpose  was 
comniilted  to  the  Legislature  for  accomplishment.  There  are 
none  of  the  complications  that  appear  with  reference  to  the  canal 
funds  touching  the  manner  of  providing  the  funds  for  interest 
and  for  final  retirement.  The  Legislature  may  impose  a  direct 
tax,  or  it  may  appropriate  the  requisite  amounts  from  funds  in 
its  treasury  or  otherwise  available. 

One  of  two  results  is  inevitable.  As  a  matter  of  practical  solu- 
tion, they  amount  to  the  same  thing.  Either,  as  we  have  already 
suggested,  the  income  from  the  investment  of  the  sinking  fund 
must  be  treated  as  a  revenue  of  the  state  and  not  an  accumula- 
tion and  accretion  upon  the  principal  of  the  sinking  fund,  or, 
if  such  income  is  not  so  treated,  but  is  treated  as  an  accumulation 
and  accretion  upon  the  principal  of  the  sinking  fund,  then  the 
provision  of  the  Constitution  means,  and  can  only  mean,  that  the 
principal  of  the  sinking  fund,  thus  accumulated  and  added  to, 
must  be  contributed  to  in  each  year  so  that,  in  any  given  year, 
the  amount  in  the  sinking  fund  shall  be  the  number  of  times 
2  per  cent,  of  the  par  value  of  the  issued  bonds  that  there  are 
years  during  which  the  bonds,  respectively,  have  been  issued  and 
outstanding.  In  the  first  case,  the  Legislature  could  and  should 
appropriate  the  income  derived  froni  the  investment  of  the  sink- 
ing fund  as  a  part  of  the  2  per  centum  contribution  to  the  sink- 
ing fund  for  the  given  year.  In  the  latter  case,  the  income  should 
be  treated  as  an  addition  to  the  principal  of  the  sinking  fund, 
thus  reducing,  by  its  amount,  the  sum  necessary  to  make  up  for 
that  year  the  2  per  centum  contribution  to  the  sinking  fund.  As 
suggested,  the  result  is  the  same,  and  the  sinking  fund,  called  for 
by  the  Constitution,  is  provided. 

It  is,  therefore,  clear  that  the  excess  of  $3,394,395.36  above  the 
required  amount  in  the  highways  sinking  funds  is  directly  attrib- 
utable to  the  incorrect  and  erroneous  methods  employed  in  the 
creation  and  accumulation  of  those  funds,  and  is  not  the  result 
of  any  method  or  system  provided  in  the  Constitution. 

The  remedy  for  this  abnormal  and  erroneous  condition  is  be- 
yond doubt.  The  excess  accumulations  in  these  sinking  funds 
are  no  part  of  the  sinking  funds.  Errors  by  the  Legislature  or 
in  the  comptroller's  office  cannot  defeat  the  plan  of  the  Constitu- 
tion. The  errors  of  the  Legislature  and  of  the  comptroller  can 
be  corrected.  In  view  of  the  fact  that  these  errors,  whenever  in 
the  life  of  these  sinking  funds  there  has  been  a  direct  tax,  have 


Ill 

taken  from  the  taxpayers  improperly  and  unlawfully  the  por- 
tions of  their  taxes  due  to  the  errors,  they  have  amounted  to  an 
unjust  tax.  It  is  not  practical  to  attempt  to  return  to  the  tax- 
payers what  was  thus  improperly  taken  from  them.  Indeed,  the 
mere  matter  of  figuring  what  each  should  receive  back  is  beset 
with  practical  difficulties,  which  probably  could  not  be  sur- 
mounted. Therefore,  the  practical  solution  is  to  reduce  the  con- 
tributions to  these  sinking  funds  in  such  amount  from  year  to 
year  that  the  taxpayers,  relieved  from  all  or  part  of  the  state  tax, 
will  be  equitably  reimbursed.  Such  is  the  solution  which  I 
recommend  to  the  Committee  of  Inquiry. 

JOHN  T.  NOKTON, 

Counsel  to  Committee, 


AN  ACT 

To  promote  efficiency  and  economy  in  the  public  service  and 
to  create  a  department  of  efficiency  and  economy  and  to  au- 
thorize the  appointment  of  a  commissioner  of  efficiency  and 
economy  as  the  head  of  such  department. 

The  People  of  the  Slate  of  New  York,  represented  in  Senate 
and  Assembly,  do  enact  as  follows: 

Section  1.  A  department  of  efficiency  and  economy  for  the 
state  is  hereby  established  and  shall  be  known  as  tlie  state  depart- 
ment of  efficiency  and  economy.  Within  ten  days  after  this  act 
shall  take  effect,  the  governor,  by  and  with  the  advice  and  con- 
sent of  the  senate,  shall  appoint  a  commissioner  of  efficiency  and 
economy  who  shall  be  the  head  of  said  department  of  efficiency 
and  economy.  Said  commissioner  of  efficiency  and  economy  shall 
receive  an  annual  salary  of  twelve  thousand  dollars.  His  term  of 
office  shall  be  five  years.  He  may  appoint  and  employ  such  depu- 
ties, clerks,  assistants,  experts  and  employees  as  may  be  neces- 
sary for  the  conduct  of  the  business  of  said  department  and  he 
shall,  upon  such  appointment  or  employment,  fix  the  salaries  or 
compensation  of  all  such  clerks,  assistants,  experts  and  employees 
at  such  reasonable  sums  as  shall  fairly  compensate  them  for  the 
service  to  be  rendered. 

§  2.  The  trustees  of  public  buildings  shall  provide  suitable 
offices  for  the  said  department  of  efficiency  and  economy  at  the 
state  capitol,  and  said  offices  shall  be  kept  open  by  said  commis- 
sioner during  business  hours  on  each  secular  day  of  the  year, 
holidays  excepted. 

§  3.  The  commissioner  of  efficiency  and  economy  shall  make 
a  careful  and  thorough  study  of  each  office,  institution  and  de- 
partment maintained  by  the  state  and  shall  from  time  to  time 
make  recommendations  to  the  governor  and  k)  the  officer,  board  or 
commission  in  charge  of  said  office,  institution  or  department 
touching  the  efficiency  and  economy  of  the  work,  business  and 
service  therein.  He  is  hereby  empowered,  and  it  shall  be  his  duty 
to  examine  the  accounts,  and  the  methods  of  business,  accounting 
and  administration  of  the  several  offices,  institutions  and  depart- 
ments supported  by  the  state,  for  the  conduct  and  maintenance 
of  which  any  appropriation  of  moneys  is  made  by  law,  and  for 

[112] 


113 

the  purpose  of  such  examination,  he  shall  have  the  power,  and  he 
is  hereby  authorized  to  subpoena  witnesses  and  compel  their  at- 
tendance before  him  and  to  subpoena  and  compel  the  production 
before  him  of  books,  papers,  accounts  and  documents  of  every 
kind,  and  to  administer  oaths  to  all  persons  subpoemed  or  ap- 
pearing as  witnesses  before  him  and  to  examine,  take  the  testi- 
mony of  and  require  answers  from  all  such  persons  upon  all  sub- 
jects pertinent  to  any  examination  being  conducted  by  him.  He 
shall  have  the  power  and  he  is  hereby  authorized  to  require  the 
several  officers,  institutions  and  departments  of  the  state  to  fur- 
nish to  him,  upon  forms  prescribed  by  him,  all  such  detailed  in- 
formation touching  the  business,  accounts,  affairs  and  administra- 
tion of  such  officers,  institutions  or  departments  as  he  may  de- 
mand, and  it  is  hereby  made  the  duty  of  all  the  officers,  institu- 
tions and  departments  of  the  state  to  furnish  such  information  in 
such  form  to  the  said  commissioner  of  efficiency  and  economy. 

§  4.  On  or  before  the  first  day  of  November  in  each  year, 
each  officer,  institution  and  department  of  the  state,  for  the 
support  and  maintenance  of  which  appropriations  of  money  are 
made  by  law,  shall  present  to  and  file  with  said  commissioner  of 
efficiency  and  economy,  upon  forms  prescribed  by  him,  a  detailed 
statement  of  all  moneys  which  said  officer,  institution  or  depart- 
ment desires  to  have  appropriated  by  law  for  the  support  and 
maintenance  of  said  officer,  institution  or  department  for  the 
fiscal  year  for  which  said  appropriations  are  asked.  The  said 
commissioner  of  efficiency  and  economy  shall  examine  said  state- 
ments and  make  such  recommendations  thereon  as  shall,  in  his 
opinion,  contribute  to  promote  efficiency  and  economy  in  the 
conduct  of  the  business  of  the  state. 

§  5.  This  act  shall  take  effect  immediately. 


AN  ACT 

To  establish  a  state  board  of  estimate  and  to  prescribe  its 

powers  and  duties. 

The  People  of  the  State  of  New  Yorh,  represented  in  Senate 
and  Assembly,  do  enact  as  follows: 

Section  1.  There  shall  be  and  there  is  hereby  constituted  and 
established  a  state  board  of  estimate  which  shall  be  composed  of 
nine  members,  to  wit:  The  governor,  the  lieutenant-governor,  the 
president  pro  tempore  of  the  senate,  the  chairman  of  the  finance 
committee  of  the  senate,  the  speaker  of  the  assembly,  the  chair- 
man of  the  ways  and  means  committee  of  the  assembly,  the  comp- 
troller, the  attorney-general  and  the  commissioner  of  efficiency 
and  economy.  The  board  shall  meet  and  organize  within  ten 
days  after  this  act  shall  take  effect.  The  governor  shall  be  the 
president  of  the  board  and  the  commissioner  of  efficiency  and 
economy  shall  be  its  secretary.  The  secretary  shall  keep  the 
minutes  of  each  meeting  of  the  board  and  shall  record  them  in  a 
minute  book  to  be  kept  for  that  purpose.  The  minutes  of  the 
board  shall  be  a  public  record  and  shall  be  at  all  times  open  to 
public  inspection. 

§  2.  The  said  board  shall  annually,  on  or  before  the  first  day 
of  January  in  each  year,  meet  and  prepare  an  estimate  for  a 
budget  of  the  amounts  required  to  be  appropriated  by  the  legis- 
lature for  the  conduct  of  the  public  business  of  the  state  in  all 
its  offices,  institutions  and  departments  for  the  fiscal  year  next 
ensuing.  Such  estimate  shall  be  prepared  in  such  detail,  as  said 
board  shall  deem  sufficient  to  advise  the  legislature,  as  to  the 
aggregate  sum  and  the  items  thereof  estimated  to  be  necessary 
for  the  maintenance  of  each  office,  institution  and  department 
in  the  state  for  such  fiscal  year.  Before  finally  making  up  such 
estimate,  the  state  board  of  estimate  shall  have  power,  and  it  is 
hereby  made  its  duty,  to  examine  into  all  requests  for  appropria- 
tions made  by  each  officer,  institution  and  department  of  the  state, 
and  it  may  hold  such  public  hearings  as  shall  in  its  judgment 
be  advantageous  for  such  purpose.  When  said  estimate  shall  be 
made  up,  it  shall  be  transmitted  to  the  legislature  with  such 
recommendations,  reasons  and  explanations  with  regard  thereto 
as  shall  be  determined  by  said  board. 

§  3.  On  or  before  the  first  day  of  November  in  each  year, 

[114] 


115 

each  officer,  institution  and  department  of  the  state,  for  the 
support  and  maintenance  of  which  appropriations  of  money  are 
made  by  law,  shall  present  to  and  file  with  the  secretary  of  said 
board  of  estimate,  upon  forms  prescribed  by  said  board,  a  de- 
tailed statement  of  all  moneys  which  said  officer,  institution  or 
department  deems  it  necessary  to  have  appropriated  by  law  for 
the  support  and  maintenance  of  said  officer,  institution  and 
department  for  the  fiscal  year  for  which  said  appropriations  are 
asked,  together  with  such  reasons  and  explanations  with  regard 
thereto  as  the  said  officer,  institution  or  department  may  desire 
to  present.  The  said  board  shall,  in  connection  with  its  estimate, 
transmit  all  such  statements,  or  copies  thereof,  to  the  legislature. 
The  said  board  shall  examine  all  said  statements  and  all  requests 
for  appropriations  presented  to  it,  and  shall  afford  to  the  several 
officers,  institutions  and  departments  of  the  state  presenting  such 
statements  and  making  such  requests,  reasonable  opportunity  for 
explanation  in  regard  thereto  and,  whenever  necessary,  shall  grant 
to  such  officer,  institution  or  department  a  hearing  thereon. 

§  4,  The  said  board,  in  making  up  the  estimate  to  be  trans- 
mitted by  it  as  aforesaid  to  the  legislature,  shall,  in  connection 
therewith,  and  as  a  part  thereof,  make  an  estimate  of  all  moneys 
required  to  be  raised  or  appropriated  for  the  payment  of  interest 
upon  the  funded  debts  of  the  state  and  its  other  obligations  bearing 
interest,  and  shall  also  make  an  estimate  of  the  several  sums  of 
money  required  to  be  contributed  in  said  fiscal  year  to  the  several 
sinking  funds  maintained  for  the  redemption  and  payment  of 
the  debts  of  the  state.  For  the  purpose  of  such  estimates,  the 
comptroller  of  the  state  is  hereby  required  to  furnish  to  the  said 
board  a  detailed  statement  of  the  moneys  which  he  deems  neces- 
sary for  such  purposes. 

§  5.  In  connection  with  and  as  a  part  of  the  said  estimate  to 
be  presented  by  said  board  to  the  legislature,  the  said  board  shall 
make  an  estimate  of  the  revenues  of  the  state  expected  to  be  re- 
ceived during  said  fiscal  year  and  shall  make  such  recommenda- 
tions with  regard  thereto  as  it  shall  deem  appropriate  for  the 
disposition  of  said  revenues.  The  said  board  shall  also,  in  con- 
nection with  and  as  a  part  of  said  estimate,  ascertain  and  report 
the  amounts  of  all  unexpended  balances  under  appropriations 
theretofore  made  by  law  and  shall  make  such  recommendations 
to  the  legislature  as  it  deems  appropriate  for  the  disposition 
thereof. 

§  6.  This  act  shall  take  effect  immediately. 


AN  ACT 

To  establish  a  state  board  of  contract  and  supply  and  to  regu- 
late the  purchase  of  all  furnishings,  materials  and  supplies 
for  the  offices,  institutions  and  departments  maintained  by 
the  state. 

The  People  of  the  State  of  New  Yorh,  represented  in  Senate 
and  Assembly,  do  enact  as  foUoivs: 

Section  1.  There  sliall  be  and  there  is  hereby  established  a 
stat-e  board  of  contract  and  supply  which  shall  be  composed  of 
seven  Miembers,  to  wit:  The  governor,  the  lieutenant-governor, 
tlie  comptroller,  the  attorney-general,  the  president  pro  tempore 
of  the  senate,  the  speaker  of  the  assembly  and  the  commissioner 
of  efficiency  and  economy.  The  board  shall  meet  and  organize 
within  ten  days  after  this  act  shall  take  effect.  The  governor 
shall  be  the  president  of  the  board  and  the  commissioner  of  effi- 
ciency and  economy  shall  be  its  secretary.  The  board  shall  ap- 
point a  clerk  to  hold  office  during  its  pleasure,  whose  duty  it  shall 
be  to  keep  a  full  journal  of  all  the  proceedings  of  the  board,  in- 
cluding every  vote  thereof  by  ayes  and  noes.  The  clerk  shall 
receive  such  reasonable  salary  as  shall  be  fixed  by  the  board.  The 
minutes  of  each  meeting  of  the  board  shall  be  recorded  in  a 
minute  book  to  be  kept  by  the  clerk  and  shall  be  printed  in  full 
immediately  after  the  adjournment  of  said  meeting.  One  copy 
thereof  shall  be  furnished  to  each  member  of  the  board.  At  the 
end  of  each  year  the  minutes  of  the  several  meetings  of  the  board 
shall  be  indexed  and  bound  in  sufficient  number  to  supply  each 
member  of  the  legislature  and  each  department  of  the  state  with  a 
copy  thereof. 

§  2.  It  shall  be  the  duty  of  said  board,  after  public  notice,  and 
in  accordance  with  rules  and  regulations  to  be  prescribed  by  it, 
to  let  to  the  lowest  bidder  who  shall  give  adequate  security  for  the 
performance  of  the  contract,  all  contracts  for  all  furnishings, 
materials  and  supplies  for  the  several  offices,  institutions  and  de- 
partments maintained  by  the  state,  except  that  in  case  of  emer- 
gency, the  said  lx)ard  may  purchase  furnishings,  materials  or  sup- 
plies for  any  office,  institution  or  department  without  competitive 
bidding  upon  its  certifying  to  the  emergency  requiring  such  pur- 
chase, but  no  such  emergency  purchase  shall  be  made  where  the 

[116] 


117 

furnishings,  materials  or  supplies  to  be  so  purchased  shall  cost  to 
exceed  two  hundred  and  fifty  dollars.  No  officer,  institution  or 
department  in  the  state  government  shall  make  any  purchases  of 
or  contracts  for  any  furnishings,  materials  or  supplies  for  such 
office,  institution  or  department.  The  sole  authority  for  the  pur- 
chase of  all  furnishings,  materials  and  supplies  for  the  several 
offices,  institutions  and  departments  maintained  by  the  state  is 
vested  in  the  said  board.  The  said  board  shall  adopt  and  pro- 
mulgate appropriate  rules  and  regulations  touching  the  manner 
of  the  performance  of  its  work  and  prescribing  the  form  and  man- 
ner of  advertisement  for  bids  and  of  requisitions  made  upon  it 
for  furnishings,  materials  and  supplies  for  the  several  offices,  in- 
stitutions and  departments  maintained  by  the  state,  except  that 
said  board  shall  make  no  rule  or  regulation  inconsistent  with  or 
in  violation  of  tlie  provisions  of  this  act. 

§  3.  Each  officer,  board  or  body  having  the  management  of  any 
office,  institution  or  department  maintained  by  the  state,  shall 
quarterly,  during  the  months  of  January,  April,  July  and 
October,  and  oftener  whenever  necessary,  transmit  to  the  said 
state  board  of  contract  and  supply  an  estimate  in  writing  showing 
in  detail  all  furnishings,  materials  and  supplies  required  for 
such  office,  institution  or  department  during  such  quarter,  within 
the  appropriations  made  by  law  therefor,  and  containing  such 
information  with  regard  thereto  as  shall  be  required  by  the  rules 
and  regulations  of  said  board.  Said  board  shall,  in  the  manner 
herein  provided,  enter  into  contracts  for  all  such  furnishings, 
materials  and  supplies,  and  shall  make  appropriate  provision  in 
said  contracts  for  the  delivery  of  the  same  at  the  several  offices, 
institutions  and  departments  requiring  the  same,  but  said  board 
shall  not  contract  for  any  furnishings,  materials  or  supplies  for 
any  office,  institution  or  department  of  the  state  in  excess  of  the 
appropriation  made  by  law  therefor  for  such  office,  institution  or 
department.  Said  board  may  invite  bids,  in  the  manner  herein 
provided,  for  all  the  furnishings,  materials  and  supplies  of  similar 
nature  required  by  the  several  offices,  institutions  and  depart- 
ments of  the  state,  and  shall  make  appropriate  regulations  for  the 
specification  of  such  furnishings,  materials  and  supplies  and  for 
the  place  or  places  of  the  delivery  of  the  whole  or  of  any  part 
thereof.  It  shall  prepare,  in  duplicate,  specifications  for  all 
furnishings,  materials  and  supplies  to  be  contracted  for  and  shall 
invite  all  bids  upon  such  specifications  and  shall  let  all  contracts 


118 

upon  said  specifications,  and  such  specifications  shall  be  a  part 
of  each  said  contract  and  shall  not  ])e  changed  or  modified  after 
the  contract  is  awarded.  Such  dtiplicate  specifications,  when 
prepared,  shall  be  filed  in  the  office  of  said  board  and  in  the  ofiice 
of  the  comptroller  of  the  state  and  shall  be  open  to  public  inspec- 
tion at  all  times.  The  board  may  reject  all  bids  submitted  to  it, 
if,  in  its  opinion,  the  lowest  bid  is  excessive.  The  public  notice 
of  the  letting  of  contracts  herein  directed  to  be  given  shall  be  a 
notice  describing  the  furnishings,  materials  and  supplies  to  be 
contracted  for,  and  shall  refer  to  the  specifications  therefor  and 
to  the  filing  of  said  specifications  in  the  office  of  the  board  and  in 
the  office  of  the  comptroller  of  the  state,  and  shall  state  the  time 
when  and  the  place  where  the  bids  invited  upon  said  specifications 
will  be  received.  Such  notice  shall  be  published  in  the  state 
paper  at  Albany,  and  in  such  other  papers  as  said  board  shall 
direct,  for  such  time  and  in  such  manner  as  shall  be  prescribed 
in  its  rules  and  regulations.  The  specifications  for  such  fur- 
nishings, materials  and  suj)plies  to  be  contracted  for  must  set 
forth  in  such  detail  as  will  adequately  inform  proposing  bidders 
of  the  nature,  kind,  quality  and  quantity  thereof,  and  copies  of 
such  specifications  shall  be  delivered  to  all  applicants  therefor. 
At  the  time  when  and  at  the  place  where  bids  are  advertised  to  be 
received,  in  the  manner  herein  provided,  the  board  shall  convene 
in  public  meeting  and  shall  publicly  open  the  bids  received  and 
record  them  in  a  book  which  it  shall  keep  for  that  purpose, 
without  any  change,  correction  or  addition  whatever.  No  bids 
shall  be  withdrawn  or  canceled  until  after  the  contract  shall  have 
been  awarded,  but  the  board  may  reject  any  bids  which  do  not 
conform  to  its  rules  and  regulations,  and  may  reject  all  bids 
and  again  advertise  for  bids,  in  the  manner  herein  provided,  if  in 
its  opinion  the  interests  of  the  state  will  be  promoted  thereby. 
Every  bid  received  must  be  a  sealed  bid  and,  enclosed  there- 
with, the  bidder  shall  deposit  -with  the.  board  a  certified  check' 
or  money  for  five  per  centum  of  the  amount  of  his  bid  as  a 
guarantee  that  he  will  enter  into  the  contract  if  it  shall  be  awarded 
to  him.  ISTotice  of  the  requirement  of  such  deposit  with  the  bid 
shall  be  embodied  in  the  public  notice  for  such  letting,  and  such 
notice  shall  also  require,  and  each  contract  shall  provide  for  the 
giving  of  a  bond  in  such  amount  as  the  board  shall  prescribe  con- 
ditioned for  the  faithful  performance  of  the  contract.     The  con- 


119 

tract,  when  awarded,  shall  bo  executed  in  duplicate  and  one 
duplicate  original  thereof  shall  be  forthwith  filed  in  the  office  of 
said  board,  and  the  other  duplicate  original  thereof,  together  with 
the  bond  accompanying  said  contract,  shall  be  forthwith  filed  in 
the  office  of  the  comptroller  of  the  state.  All  orders  for  emer- 
gency purchases  shall  be  executed  in  duplicate  and  shall  be  forth- 
with filed  in  the  office  of  said  board  and  in  the  office  of  the 
comptroller  of  the  state. 

§  4.  The  comptroller  shall  audit  all  bills  and  accounts  presented 
for  furnishings,  materials  and  supplies  delivered  under  contracts 
made  by  said  board  in  the  manner  herein  provided  and  also 
delivered  under  orders  for  emergency  purchases  as  herein  pro- 
vided. Each  officer,  institution  and  department  of  the  state  shall 
upon  the  receipt  of  any  furnishings,  materials  or  supplies,  either 
under  contract  or  under  order  for  emergency  purchases,  make  a 
true  and  correct  itemized  statement  and  account  thereof  and  shall 
forthwith  transmit  the  same  to  the  comptroller  of  the  state  and 
a  copy  thereof  to  the  state  board  of  contract  and  supply. 

§  5.  All  acts  and  parts  of  acts  inconsistent  with  the  provisions 
of  this  act  are  hereby  repealed. 

§  6.  This  act  shall  take  effect  immediately. 


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